A surety bond is a three-way contract between the bonding company, you as the property or business owner, and your customer. Surety bonds in New York provide assurance (not insurance) that you will complete the job or provide services as outlined in the contract, up to a specific bond amount. There are many benefits to bonding that you should think about if you are performing work or providing services in any industry.
Limits Fraudulent Companies
One of the benefits of surety bonding whether you are the company or the obligee is that it limits fraudulent companies. When you obtain bonding for a job or a service that you will be performing, that ensures to the client that you will keep your end of the contract up to the amount of the bond.
In many instances, a surety bond is required in order to proceed with work or as part of an insurance policy. Surety bonds are beneficial in this manner in that they help you remain compliant with the terms of your insurance policy or a job contract.
Opens Up Job Opportunities
Many clients and customers will not work with companies who do not provide bonding for their products and services. Others prefer companies that have been bonded. Either way, when you are responding to a request for proposals for work that an agency or another business needs, offering a surety bond for the project will give you an edge over your competition.
When you are looking for a way to obtain more contracts, stay in compliance with the terms of your insurance policy, obtaining surety bonds in New York can provide the answer.