A Word From Our Sponsor On Why You Need A Surety Bond

May 18, 2012
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Any business that contracts to do work for a third party is generally held under contract until the work is completed as outlined in the contract. This stands true for contractors as well. More often than not, the party for whom you will be building will want full assurance that you will come through on your contract. This is where a Surety Bond Maryland comes in. Surety bonds are forms of insurance, but they are a little unique. Rather than protecting you against claims of liability or from damage to your person or property, surety bonds protect the party for whom you are working. A Surety Bond Maryland guarantees those with whom you have contracted work that you will perform the work according to their specifications.
Now this certainly sounds like an added expense that is not to your benefit. The fact is, many businesses or individuals who seek your services may require that you hold such a surety bond before they will contract with you. Your holding of a Security Bond Maryland protects them should you default on your contract for any reason. It insures their ability to move forward should you fall through.
To obtain a security bond, you would sign a contract between yourself or your business and a guarantee, typically an insurance company. This contract would promise reimbursement to those for whom you are doing work in the event that you default on your obligations. In the event of such a default, the guarantee is obligated to pay the party that employed you. The amount they would pay is determined by the contract you entered into with the guarantee. Click here to learn more.

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