Commercial Bonds in Blairsville, GA
Running a business requires careful planning, including accepting that things may eventually go wrong. Even the most meticulously operated businesses staffed by highly experienced employees might inevitably need to deal with accidents and unexpected issues. In such situations, having retained appropriate loss control measures, such as business bonds, can make all the difference.
What Are Bonds? 
Not to be confused with savings bonds that one might purchase in the hopes of them accruing value, business bonds represent a different type of investment. These financial instruments, also known as surety bonds, can be purchased to establish a means of financial security. Although they may come in various forms, these products typically offer a way for clients, customers and other parties to recoup losses if your business is unable to uphold its end of a bargain.
How Do They Work?
Although exact functionality may vary, surety bonds generally entail a contractual agreement between the following parties:
- The principal, such as your business
- The obligee, such as your client
- The surety, such as your insurance company
After the principal purchases bonds, they can be used to compensate the obligee should the former prove incapable of delivering goods or services as agreed. This may help satisfy clients who might otherwise feel they have little recourse but to sue your business in order to recover their losses.
What Types Are There?
Bonds may come in many forms, including the following:
- Contract bonds
- License and permit bonds
- Performance bonds
- Fidelity bonds
- Bid bonds
- Maintenance bonds
Why Are They Important?
Without bonds, your business could be exposed to potentially devastating financial consequences. If you’re unable to complete a job as promised or are found to be operating in violation of laws or industry standards, your bonds could help satisfy other parties. Conversely, if you don’t have bonds in place, you could have to pay for these losses out of pocket, and your reputation might also suffer. Furthermore, many clients may require bonds before feeling comfortable doing business with you.
We’re Here to Help
Contact Esquire Insurance Services of Georgia today to discuss your bond-related needs and find the appropriate solutions.