Bonds in Warren, OH

As a member of the business community in Warren, Ohio, many of your neighbors and peers may rely on your company regularly. Providing professional guidance, essential services or specialized advice are all common practices across various industries. Still, even the most experienced experts and artisans need to consider the possibility of things going wrong. When such situations have adverse impacts on other parties, such as clients and customers, bonds can make all the difference.

What Are They?

Although often referred to as bonds insurance, your business should understand that these financial tools may not function the same way as products like commercial property and workers’ compensation insurance. Rather than providing ongoing coverage for various incidents throughout a predetermined coverage period, bonds are often purchased to guard against losses involving a specific client or job. Should covered losses occur, bonds can compensate affected parties and limit out-of-pocket consequences.

Types of Bonds

These loss control measures may come in many forms. While selecting the appropriate products can be tricky, a knowledgeable and qualified professional, such as those at Ambassador Insurance Group, can provide guidance. Specifically, your business may often encounter a need for the following types of bonds:

• Surety bonds include many subcategories, including contract bonds, commercial bonds, performance bonds and license and permit bonds. Typically, these products establish an agreement between the following three parties:
  • The principal, such as your business
  • The obligee, such as your client
  • The surety, such as your insurance company

If your business is unable to fulfill the terms of a contract, the surety bonds you’ve purchased can reimburse the obligee for their losses.

• Fidelity bonds are also known as honesty bonds and may often help financially protect companies that have access to other parties’ property and assets. For example, cleaning companies that dispatch employees to client locations after hours may need fidelity bonds. Specifically, they may help offset losses arising from criminal or dishonest acts your employees commit, such as the following:
  • Theft
  • Property damage
  • Vandalism
  • Burglary
  • Forgery
  • Fraudulent transfer of funds

Why Are These Measures Important?

Bonds can form a critical and core pillar of your business’s risk management and loss control efforts. Having invested in appropriate products can shield you from potentially devastating financial consequences. Furthermore, your reputation may be protected as well, as clients may be less likely to sue or harshly criticize your business due to bonds’ compensation. Additionally, many prospective clients may require bonds before agreeing to work with your company, meaning failing to understand and address such needs could inhibit growth and networking.

We’re Here to Help

Contact Ambassador Insurance Group today to learn more about bonds.