Most of the business owners know how much importance surety bonds holds to pay debts or loans. These are the bonds that help businesses to sustain in the competitive market and to increase brand credibility. In some certain cases, the bonds are required legally to run a business. In Oklahoma City, when you need to know about surety bond come to Carpenter Insurance.
Surety Bond Construction
This is also known as contract bonds and this agreement lies between Surety Company, the contractor and the customer. This bond ensures that the contractor has financial support to complete the job. You may think is it similar to insurance policies. No, unlike insurance policies, it lends money to the holder to pay loans. This is acceptable when a business is unable to meet agreed-upon contractual requirements. The business then has the obligation to repay the money later.
Who Needs This Bond?
The contractors who belong to private sectors do not need this bond but they mostly utilize this. Business bodies who belong from local, state or federal Governments and other general contractors and regulatory bodies need this.
Type of Contract Bond
There are so many types of bond available but a few are noted as the most common ones. Those are bid-bonds, the performance bond, the maintenance bond and the payment bond. These bonds are required on the business type.
License and Permit
You need this in every state as license and permit are required to guarantee that the contracting company will follow all state rules, federal laws and other local regulations.
Cost
How much does it cost to have a surety bond in Oklahoma City or other places in the United States? It completely depends on the contract value. Generally, it is 0.5% to 3% of the contract value. There are other a few influential facts of cost such as contract size, premium due etc.
How can you get a bond? You need to contact an insurance company to get more insight and to get a bond. Come to Carpenter Insurance for a surety bond in Oklahoma City. Let us help you to get the desired bond for your business.
