Commercial bonds prove the credibility of businesses and ensure they follow the regulations specific to their industry. This helps keep consumers safe from experiencing physical or financial harm due to unlawful business practices. Additionally, bonds can act as a form of insurance to protect companies against allegations of inadequate work production or noncompliance with certain guidelines.

Having years of experience working with business bonds, Integrity Insurance Solutions offers a team of dedicated underwriters to assist companies in San Marcos, TX. Below, they explain some of the most important elements to know about bonds.

Basic Guide to Commercial Bonds & Insurance Protection

When Is It Necessary to Purchase a Commercial Bond?

Many state and local governments require companies in particular industries to obtain a commercial bond before they can legally acquire a license. This shows they have the appropriate skills and qualifications to conduct business. Insurance agencies with a background in the bond market can help a business get properly bonded and guide them through the claims process should the need arise.

What Are the Types of Commercial Bonds?

Commercial bonds can be broken down into three categories: construction/contract bonds, license and permit bonds, and court bonds. The first type guarantees that a contract will be fulfilled. License and permit bonds are designed to protect the general public by holding businesses accountable for their actions. Court bonds cover legal proceedings in matters involving fraudulent activity or use of finances.

It can be confusing for business owners to understand exactly what kind of commercial bond they need to purchase. This is why it’s a good idea to work with an expert in the insurance field who can advise on the right type of protection to get. If you live in Hays County, contact Integrity Insurance Solutions at (512) 396-2211, or visit their website for more information on the different types of insurance policies they offer.