Bonds in Douglasville, GA

Throughout the course of your company’s operations, you and your employees may come up short despite your best efforts and intentions. In these situations, other parties relying on you could suffer financial losses for which you may be blamed. Retaining appropriate loss control measures, such as bonds, can be critical.

What Are Bonds?

Bonds are financial products sold by insurance companies that can help your company provide recourse and reassurance to other parties, such as clients and regulatory agencies. In a general sense, bonds exist to offer a means of compensation for others with whom your business may work should you be at fault for their losses and damages.

Why Are Bonds Important?

Bonds can come in many forms and may play critical roles in business arrangements and contracts. Consider how the following types of bonds may assist your company and its clients in maintaining financial security:

• Surety bonds—These tools typically entail an agreement between three parties: the principal (e.g., your business), the obligee (e.g., a client) and the surety (e.g., an insurance company). After the principal purchases surety bonds, they can be used to compensate the obligee should the former renege on their obligations. Surety bonds may include many subtypes, such as a performance bond or payment bond.
• Fidelity bonds—These products may be essential if your company has access to clients’ premises or property and can offer financial protection for situations in which your employees, including contract workers, commit fraudulent or criminal acts. Covered incidents may include theft, burglary, property damage and forgery.

Learn More

The team at A Advantage Insurance Agency has proudly served the Douglasville area since 1992 and will draw on this extensive knowledge and experience to ensure your business and its clients have the right bonds in place. Contact us today to get started.