Why asking for a surety bond is a smart thing to do before hiring a contractor
November 29th, 2009 by admin
When you use a contractor to do any type of work around your home or business, it is a wise decision to find out, or request, that they be bonded. A surety bond is a type of insurance policy for the consumer that protects them from fraud, default or other types of non-performance. Surety bonds do not protect the contractor only the consumer.
Surety bonds are not easy to get and companies that are bonded are more likely to hold themselves to higher standards. Because a bond is a third party guarantee, the bonding company thoroughly investigates the company prior to issuing a bond. Financial and other matters will be researched and verified prior to issuing any form of bond or guarantee for the company.
Asking for a bond may seem a little crass at first, but it is far better for you, as the consumer, in the long run. You will not have to worry about your projects being unfinished or any other failure to perform by your contractor. It makes good business sense for both parties.