For some people, March means spring cleaning. For others, March is all about college basketball and March Madness brackets. For insurance agencies, March is a month that sees quite a few businesses interested in surety bond insurance, including the state government. March is the end of the second fiscal quarter, which means that many companies are gearing up for new jobs starting at the beginning of the third fiscal quarter that require bond insurance.

Whether a business has obtained surety bonds in the past or are new to bond insurance, the process can still seem overwhelming. This is why the insurance professionals at Jones & Associates offer the following tips regarding bond insurance.

Important Surety Bond Insurance Information

If your company has never acquired surety bond insurance, there are a few important things that should be considered.

  • Types – The first thing to know about bond insurance is that there are numerous types of surety bonds, ranging from Liquor Bonds to Lost Title Bonds and Construction Bonds. This makes it necessary to find out which type of surety bond insurance the obligee (the entity requiring the bond), demands.

  • Approval – The second thing to know about surety bond insurance is that insurance companies rely heavily on your personal and professional financial records. Typically, insurance companies that write surety bond insurance require: personal financial statements for all owners; business financial statements; and an application requesting information from each owner and their spouse, including social security numbers. It may appear to business owners as an invasion of privacy; however, it is simply the process necessary to obtain surety bond insurance. Luckily, once a company is approved for initial bond insurance, the process for subsequent bonds becomes much easier.

  • Job Requirements -The last thing to note about surety bond insurance is some jobs require multiple bonds. This is typical with construction jobs that require: a bid bond in order to bid for a job; a payment bond to ensure that suppliers and subcontractors are paid for materials and completed work; and a performance bond to ensure that the contract will be completed according to the terms and conditions of the contract. It is important to report back to the bond insurance company if you won the job.

Even if you are not currently bidding on a job that needs a bond, you don’t have to wait until you really need a bond to apply for one. If your company will be working on jobs in the near future that could require bond insurance, get a jump start on the application process and apply early. Then when your company requires surety bond insurance, the process will be much faster and less stressful. The insurance professionals at Jones & Associates know the particulars of surety bond insurance, so call us today for your bonding needs!

Need Bond Insurance in College Station TX?

Jones & Associates Can Write Surety Bond Insurance For Your Company!

Call (979) 599-7532 – Today!

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