Bonds, offered and sold by insurance companies, are often mistaken for insurance policies. Bonds are financial tools used to guarantee required performance of a business. In the event that you or your employee’s action or failure to perform causes financial harm to the entity on the receiving end of your business, you want to make sure a bond is in place.
The main differences between bonds and insurance policies include the number of parties involved and the party who is financially compensated. With bonds, there are three parties involved—the Obligee (person protected by the bond), the Principal (person who receives the bond) and the Surety (issuer/supplier of bond); whereas insurance policies involve the insurer and the insured. A bond protects the investment of the consumer, who ultimately benefits financially, as opposed to an insurance policy, which protects the business owner.
Sometimes, bonds are required by government regulations and other times, consumers demand them. Either way, bonds are not a substitute for general liability insurance. Here, at Quantum Source Insurance Group (QSIG), we work with you to determine if your business is in need of bonds in addition to your current insurance coverage.
QSIG provides quality bonding services for small businesses to large corporations. Some of the surety bonds that are included in our portfolio are:
Our experienced team at QSIG wants to help guarantee your business’s integrity and honesty, performance and financial responsibility, as well as compliance with a law or contract. Contact us today and we will work with you every step of the way.
When was the last time you updated your business insurance policies? Take the Quantum Challenge to see if you need an updated policy. (Short answer: You do.)