Businesses face an unprecedented variety of risk when providing products or services to their consumers. Fortunately, with the right insurance coverage, protecting your organization can be easier, less stressful, and provide you with peace of mind. For construction companies, having the proper coverage is particularly important to ensure less risk and repercussion if contractors don’t follow through with their promises.
Seeking a provider who specializes in surety bonds in NJ is an excellent way to ensure you are working with professionals who understand your needs, risks, and requirements for adequate insurance. Here are some of the types of surety insurance you could invest in.
Types of Surety Bonds
- Payment Bond: a construction project requires the collaboration of several parties including laborers, materials suppliers, and in some cases a subcontractor. A payment bond ensures that a hired contractor sees that each of these parties is compensated adequately.
- Bid Bond: this kind of bond provides a written contract and agreement that the contractor will be fair about setting a bid price, and will then follow through with their quote and complete any work in a timely and efficient manner.
- Maintenance Bond: this insurance is necessary to provide protection against potential defects in the project following completion. It is usually effective for a specified time period.
Other types of surety bonds in NJ include performance bonds and a labor and materials bond. Take the steps today to protect your company from the risks associated with the construction industry.