Surety Bonds Protect Companies from Dishonest Employees and Neglectful Contractors.
Bonds are a necessary part of doing business. Surety bonds are nothing new, created around 3,000 BC. The Romans passed surety laws as early as 150 AD. The concept of protecting your business from unscrupulous employees and contractors is very familiar. There are a variety of bonds available at BIG of Texas to meet specific situations and some types of bonds are called different names by different insurance companies.
At BIG of Texas, some of the most popular bonds we process include:
- Dishonesty Bonds
- Fidelity Bonds
- Performance Bonds
- Contract Bonds
In Texas, surety bonds include dishonesty bonds and fidelity bonds. Other names associated with these types of bonds include crime coverage bonds and crime fidelity insurance. These bonds do the same things: protect the company from employees’ theft, embezzlement, burglary, or destruction of property. These crimes cost an estimated $400 billion nationwide per year, but these losses are offset by investing in the right insurance protection.
Fidelity bonds in Texas cover all current or former employees of the company, including partners in the business, members, directors, trustees, and volunteers. Fidelity or dishonesty bonds in Texas also cover seasonal employees and temporary workers.
Many companies rely on outside contractors instead of regular employees for certain jobs, especially building construction, remodeling, and renovation. For these workers, bid bonds, performance bonds, and contract bonds are available. In Texas, performance bonds cover the failure to complete a project or failure of the contractor to meet the terms of the contract.
Most claims at BIG of Texas are a result of contractors who are financially insolvent. The most common issue faced by the insured company is the inability of construction contractors to buy the necessary equipment and materials or to pay their workers to complete the project. Performance or contract bonds cover these losses, up to the value of the completed project.
With the right protection from surety bonds, your business is protected from dishonest employees and any contractors you may deal with. Like municipal bonds, it’s peace of mind for your company’s bottom line.
Call us today to find out more!