Do You Need to Bond Your Business?

With so many reported burglaries and “stranger danger” scares in the news, many people feel very uneasy about letting strangers into their homes. However, electricians, plumbers and contractors — among others — must enter the home in order to perform their jobs. While word of mouth referrals may help customers feel at ease in terms of the professionalism of a business, a surety bond can help give customers the peace of mind of knowing that the money they invest in a project will lead to delivered results. 

What does this mean? If you signed a contract to remodel a family’s kitchen, they will expect the job to be completed as agreed upon. If your business breaches the contract or goes bankrupt mid-project, you could be in big trouble. However, being bonded can help sort out similar dire situations. 

A bond is essentially a guarantee that the job will get done according to expectations as detailed in the contract. If something goes awry, the bond insurer is there to cover any necessary expenses for the project to be completed. 

In fact, bonds are so vital for establishing a trusting relationship between business and customer that many construction professionals are required to purchase a bond before they can obtain a business license. This helps limit the industry to trustworthy professionals, which is beneficial to property owners.  

What type of bond does your business need? There are many types available, each designed to serve a specific occupation. Speak with your independent insurance agent to determine the right coverage for your needs. 

Prove your professionalism to potential customers. Call Pan American Insurance at (915) 562-0009 for more information on El Paso bonds.