{"id":718,"date":"2023-10-21T07:33:07","date_gmt":"2023-10-21T07:33:07","guid":{"rendered":"https:\/\/businessyield.com\/ins\/?p=718"},"modified":"2023-10-21T07:45:00","modified_gmt":"2023-10-21T07:45:00","slug":"bond-insurance","status":"publish","type":"post","link":"https:\/\/businessyield.com\/ins\/business-insurance\/bond-insurance\/","title":{"rendered":"BOND INSURANCE: What Is It & Why Is It Needed?"},"content":{"rendered":"

You may feel confident that your business is fully covered thanks to the presence of several types of insurance, such as general liability, professional liability, worker’s compensation, commercial auto, commercial umbrella, cyber insurance, and so on. But did you know that if you work in a particular industry, you might need more protection than what standard commercial insurance provides? This may seem bizarre, but hear me out. However, doing business with or delivering services to another party can be complicated, and additional risk mitigation methods may be required. Furthermore, this guide will teach you all you need to know about bond insurance and its types, what it covers, and bond insurance for your small business. <\/p>

Bond Insurance<\/span><\/h2>

An insurance bond is a legal agreement between a principal (the party purchasing the bond), an obligee (the party receiving the benefit of the bond), and a surety (the insurance company). Bonds are not insurance policies in the traditional sense; rather, they are legal contracts between three parties that guarantee compensation to the obligee if the principal defaults on contractual obligations.<\/p>

Surety bonds and fidelity bonds are the two primary types of insurance bonds, each of which includes subtypes and protects against various situations.<\/p>

Bond Insurance for Small Business<\/span><\/h2>

Bond insurance for small businesses implies the purchase of a surety bond. When it comes to bonds, three parties are involved:<\/p>