Bonds in Bronson, MI

Despite best efforts, your business and its employees may not always be able to deliver perfect services within expected timelines. This can potentially have significant consequences for your clients, which could reverberate back to your own company’s finances and reputation. Such inevitabilities make understanding and acquiring the right bonds a potentially critical part of your risk management and loss control efforts.

Why Bonds Are Important

Bonds can make all the difference in the wake of errors, delays or other shortcomings that may impact other parties depending on you. This financial security can be paramount, as your business might otherwise face catastrophic financial losses and irreversible reputational harm after even a single mishap. Furthermore, many clients may require you to retain certain bonds before offering you a job or even allowing you to bid on it.

Types of Bonds

When exploring bond options, familiarize yourself with the following classifications:

• Surety bonds—These products, which may include many subcategories, such as commercial bonds and contract bonds, establish a contract between your business, its client and an insurance company. After purchasing them, these bonds can provide clients and customers with recourse should you prove unable to deliver on promised services.
• Fidelity bonds—These bonds, also known as honesty bonds, can ensure that you can compensate other parties if they suffer financial harm due to fraudulent, criminal or dishonest acts committed by your employees.

How Do Bonds Work?

While bonds are often referred to as bond insurance, it’s necessary to understand that these arrangements do differ from traditional insurance policies. Whereas many insurance policies establish ongoing financial protection from certain risks for a set period (e.g., 6 or 12 months), bonds are generally purchased to cover a single job or contract. Still, bonds can work alongside insurance to ensure comprehensive financial stability even during difficult times.

Learn More

Having served businesses in the Bronson area since 1938, Hathaway Agency, Inc is well-positioned to help you find the right bonds. Contact us today to learn more.