Why Every Contractor Needs Performance Bonds

Performance bonds, also known as surety bonds, are the lifeblood of your contracting business. Without them you will be blocked from bidding on many lucrative jobs since most commercial contracts, and all federal projects, require them.

Most Common Bonds Used by Contractors

  • Bid Bonds – provide assurance that you will enter into a contract, and post a performance bond, if you are awarded the project.
  • Performance Bonds – guarantee that you will complete the contract, per specifications.
  • Payment Bonds – certify that you will pay all your subcontractors.

Parties to the Contract

Surety bonds have three parties to the contract:

  1. Obligee – this is the project owner (the one who benefits from the bond if the contractor fails to perform)
  2. Principle – the contractor who will complete the work
  3. Surety – the issuer of the bond

In the event the contractor defaults on his performance, both the contractor and the insurance company are jointly and severably liable. If a solution cannot be found, the obligee has the right to collect the full amount of the bond.

Protect Your Business and Reputation

Being able to obtain surety bonds not only opens the door to all types of jobs, but it also provides assurance to subcontractors that they will be paid if they do work for you. Your reputation is everything in the contracting business, so visit an insurance bond specialist and get your business off on the right footing.

Why You Should Take Business Insurance Seriously

When running a business, there are many moving pieces that help it to run smoothly. When one of these pieces is impaired, or removed altogether, it can cause a business to come to a screeching halt. While business insurance in Orange County can’t stop bad things from happening, it can protect you in a situation where a part of your business is seriously affected by catastrophe or misfortune.

While most businesses understand why it is a good idea to have insurance to protect physical property, not enough think about the aftermath of part of their businesses stopping due to unexpected events. To help cover this, a good business insurance Orange County provider can offer business interruption insurance to help you recoup the loss of business you may experience if parts of your business are shut down. This type of coverage can be a life saver for any business, as this means cash can continue to flow in order to allow them to continue to service clients and make money.

Aside from the acts of God that can harm a business, there are also insurance coverage solutions to protect your business from harm that an employee may cause. These coverages are called EPLI policies and can also save a company from a lot of trouble if something like this occurs. As you can see, having the right coverage can help to save a business when misfortune falls.

Various Coverages in Business Owner Policies

Carmel business owners policy coverages are designed to protect businesses from the most common risks they face in the course of operation. Understanding the particulars of these coverages can help you determine whether or not this policy is right for your company.

Also known as a BOP, this type of insurance policy covers legal responsibility for claims as a result of bodily injury or property damage caused by the business’ employees or owner. It also protects the property and buildings where you conduct business and their contents. This includes personal property on the premises during business hours and the equipment used. Business interruption coverage protects from the risk of lost income if you are forced to close due to a natural disaster, fire or similar event beyond your control.

There are additional protections that can be added for more specific risks. If your industry has more extensive exposure to risk related to crime, you can add an enhancement to your policy. Likewise, if there is special equipment to insure against breakdown, that’s another specialty item that can be added.

As a business owner, you can rest assured that you’re adequately protected when you take out the necessary insurance. Carmel business owners policy coverages are designed to protect you from the most common risks your business is exposed to, and they can be tailored specifically to include additional risks that may be particular to your industry.

Insurance Coverage Options for Warehouse Owners

The warehousing industry plays a large role in the economy, and no one would argue that warehouse owners have an obligation to protect each of the various operations in their charge. In fact, warehouse legal liability causes warehouse owners to solicit insurance providers that will help them select the best coverage options for their needs. Fortunately, there are several coverage options available to fit any warehouse owner’s coverage needs.

The type of warehouse an owner is trying to insure plays a role in determining coverage options. Distribution centers and cold storage facilities are considered to be warehouses as well. After examining a warehouse’s operations, a skilled provider will create a comprehensive plan that will deliver the right level of coverage. In addition to traditional coverage options like workers’ compensation, flood insurance and general liability, many providers offer specific warehouse legal liability coverage that protects owners from loss or damage of goods during each facet of the business’s operation.

The warehousing industry can be very risky. Since eliminating risk is impossible in business, warehouse owners should make it their priority to reduce their exposures to loss. When exposures occur, it is important to make sure that warehouse owners have the right insurance coverage options to provide the appropriate level of protection at a competitive rate.

Oil and Gas Insurance: An Essential for All Stakeholders

The oil and gas industry has been a significant source of revenue in New Mexico for many years, and the state stands out as one of the leading producers of crude oil and natural gas in the United States. The growth of this industry, however, comes with risks that make NM oil and gas insurance a necessity not only for roustabouts on the oilfields but also for downstream handlers, including truckers, distributors and retailers.

The industry surrounding petroleum and natural gas is fraught with risks from initial extraction to final distribution to customers. This is particularly true given the instability of economic factors and the continuous evolution of extraction technology to meet demands for more efficient, higher-volume production not only in established oilfields but also in increasingly extreme environments. Equipment failures, property damage from weather or other environmental factors, interruptions in business and third-party claims can become extremely costly for petroleum and gas companies that have no buffer.

A sound NM oil and gas insurance package is the best defense against the volatility of the oil and gas markets and serves as a safety net for workers and equipment alike. This policy can help to protect stakeholders in all aspects of the petroleum and gas sectors from the risks of an ever-changing industry.

 

Prevent the Problems Arising From Lack of Insurance

Business decision makers have a lot on their mind – from finding the right employees to making sure that products are ready for distribution, there is always something that needs to be done before a company is ready to open its doors for the first time. Did you know that having business insurance in Orange County is another requirement that has to be fulfilled before you can begin operation?

Safeguarding Your Present and Future

In virtually every location, the right insurance policies must be in place before a company can legally operate. Without the right coverage, a company risks many problems. These can include:

  • Lack of financial resources to address emergency situations
  • Fines and citations from governing bodies
  • No recourse should equipment break down
  • No safety net protecting stakeholders from personal loss

There are many important reasons to have business insurance in Orange Country. Not only will you be preventing potential problems from causing irreparable financial devastation to your organization, you will be protecting your company’s good name and professional reputation.

Speak With an Insurance Expert Before Buying

Before selecting a policy, consider speaking with an insurance agent that can explain the particulars of business insurance coverage programs. This will help you make certain that your company is fully protected in every circumstance.

When Is a Customs Import Bond Needed?

A customs import bond is legally required to import goods into the United States. It allows the government to get taxes and other fees due on goods coming into the country. In addition, it ensures that the government can monitor what is coming in. If you are importing goods, it is important that you understand when you will need this type of bond.

Value

A customs import bond is needed for goods that are worth $2,500 or more. The bond will pay the taxes and duties that are required for the goods.

Regulated Goods

You also must file a bond is you are importing goods that are regulated by federal agencies. These include things such as firearms, alcohol and food items.

Type of Bond

You should also consider the type of bond. You have two general options. You can get a single entry if you will not be importing on a regular basis. However, if you are going to be importing regularly, you would need a continuous bond.

Making sure you are keeping your business transaction legal is essential to avoiding serious issues. You should always know when you need a customs import bond and make sure to secure one before your goods are to be delivered if you want to keep things problem free.

Why Small Businesses Need Liability Insurance

For small business owners, a lawsuit can bring business to a standstill. If you are in the market for business insurance in Henry County, you should consider adding liability coverage to your policy. Here are three reasons every small business needs liability insurance.

Coverage Is Broad

Regardless of your industry, there is a business liability policy that can protect your business assets. For lawyers, doctors, dentists, and other professionals, a good professional liability policy will cover any errors and omissions that occur during the professional service. Similarly, if your company makes things, you should consider buying protection for product liability.

Lawsuits Are Expensive

Regardless of whether they have merit, lawsuits are expensive to prepare for and defend against. If you are the target of a lawsuit, you can expect to spend a tremendous amount on legal fees. A liability insurance policy will insulate your assets from legal costs if one of your customers or clients sues you. The only way to protect your assets is to purchase that sort of coverage.

Peace of Mind is Valuable

If you are a small business owner, you should focus on your business. You shouldn’t worry about the constant legal threat of lawsuits and liability. With a policy, you can achieve the peace of mind you need to run your business.

When purchasing business insurance in Henry County, be sure to add liability coverage to your policy. For many reasons, every small business should have this protection.

Ways to Make Your Work Environment Safer

While business owners should have dependable Los Angeles insurance policies in case their employees ever have an accident, it’s also good to take steps to minimize the chances of an employee suffering from an accident in the workplace.

Continually Train Your Staff

Just because employees have been on the job for a while or are no longer in training doesn’t mean they don’t need a refresher every now and then. Remain vigilant on the most current training for your industry and the equipment your employees use to keep them safe and up-to-date.

Minimize risk in your work environment

Make Safety a Habit

Pay attention to the way your employees work to make sure they work safely and don’t cut corners for productivity’s sake. Break bad and unsafe habits and ensure employees are always aware of the consequences of taking shortcuts or doing a poor job.

Give Your Employees the Right Tools

Make it easy for your employees to do things safely by ensuring they have the equipment and tools needed to do their jobs correctly and efficiently. If you think the cost of new or updated equipment is too high, think of how much it will cost for a workman’s comp claim and the resulting loss of productivity.

While you’re working on making your work environment safer, don’t forget to prepare for the worst. Make sure your current Los Angeles insurance policy is enough to take care of any accidents that might occur.

3 Tips for Protecting Your New Business

Starting and operating a business comes with many challenges to overcome and decisions to make. Some new business owners choose to not focus on getting insurance because of upfront costs, without realizing the financial devastation that could be caused by unpredictable circumstances. If you want to protect your business with business insurance in Wayne, New Jersey, here are some tips.

1. Make a Plan

Develop a thorough business plan to outline what your business will do. A solid and detailed business plan is an important tool when it’s time to secure insurance. Having a plan demonstrates that you have done your due diligence to insurance providers.

2. Understand Your Risks

There are numerous types of business insurance in Wayne, New Jersey on the market. General liability, property coverage, cyber liability, and commercial automobile coverage are some examples. Knowing the unique risks of your business will help you to decide what insurance plans you need.

3. Personalize It

Your business is one of a kind, which means your insurance should be unique too. You may want to add additional options to your plan based on the specific needs and risks of your business. Investing in customized business insurance in Wayne, New Jersey is a smart decision.

Make sure your new business is ready to take on any unforeseen challenges that may arise in the future.