Importance of Business Service Bond

1. Importance of Business Service Bond A surety bond is a type of insurance that guarantees the performance of a contract. The purpose of a surety bond is to ensure that contracted work is performed according to agreed-upon specifications. There are three participants to the agreement: the principle, or the company that is contracted to perform the work; the obligee, or the entity for whom the work is being performed; and the surety, which is providing the bond. The surety promises to pay any losses incurred by either party if there are problems with performance of the contract. For example, if an employer hires someone who does not have experience performing certain functions, and then fails to complete them correctly and on time, either party can file a claim against their respective bonds should they suffer loss as a result of this breach Business Service Bonds can be used as a source of credit enhancement in situations where an applicant's credit score is below the minimum required by lenders. They can also be used as collateral in securing loans, especially if there are no financial statements available to show proof of income. The main purpose is to ensure that contracted work is performed according to agreed-upon specifications. These Business Service Bonds can be issued for many different purposes including: real estate transactions, construction projects, hazardous waste disposal sites and more. As an employer, you are responsible for the actions of your employees while they are on the premises of a client. If an employee commits theft or embezzlement while at work, you could be held liable. The Business Services Fidelity Bond protects your assets from financial liability for the loss of a customer's or client's money, securities, and personal property caused by acts of misconduct or dishonest employees of the insured while on the clients premises. Important Facts to know: 1.Dishonest acts of your employees while on the premises of your clients creates a liability for YOU, the employer. 2.A standard bond DOES NOT protect your assets from liability due to employee dishonesty. 3.If you are an owner or officer of a company that has employees working at client locations, odds are, your business or personal assets are at risk! 4.Employee theft isn't a casual occurrence. It is an intentional act of misconduct, embezzlement or theft and it's the cause of one out of every five business failures. According to the Department of Justice, nearly a third of employees are involved in some form of theft and this is a number that should not be ignored. Are you looking for a Business Service Bond for your organization? We can help! To issue your business service bond, we will simply need to know: 5.your company name 6.company address (can be a home address)

2. 7.desired bond amount 8.number of employees to be covered by the bond 9.the type of work performed by your company And that’s it! Once you’ve submitted this information via our secure online portal, our team will issue your business service bond!