Louisiana & Mississippi Bonds Services
Bonds are great marketing tools used by legitimate businesses to stand out from the competition, and purchasing one can be the difference between winning a job or losing out to your competition.
Almost all potential clients require proof that a business is bonded prior to awarding them the job, because having a bond demonstrates trustworthiness and credibility to both current and future clients.
Businesses sometimes face issues with employees, such as theft and embezzlement. Although a business may have insurance to protect their company from loss, these policies may not cover theft by an employee. To help safeguard against such losses, a business should consider purchasing supplementary insurance known as a fidelity bond. Also known as crime insurance, fidelity bonds reimburse employers for damages or losses that arise from theft, forgery, fraud or embezzlement by company staff. Losses due to an employee stealing from a customer, robbery and burglary of the company safe, destruction of company property, and the illicit transfer of funds are also covered by fidelity bonds.
Surety bonds, also known as security bonds, are another type of bond product. These bonds do not protect employers in the event of theft or fraud by employees. Instead, surety bonds are a promise to pay a recipient. These bonds are commonly used between contractors and property owners, and are often used in court cases. With surety bonds, an insurance or surety company acts as an intermediary between two parties. The surety company guarantees that one party will fulfill its obligation to the second party. If this obligation isn’t met, the second party recovers losses from the surety company. There are many different kinds of bonds including bid bonds, performance bonds and payment bonds. If your company has signed an agreement to build a building to contracted specifications and for a pre-determined price, a performance bond would provide protection or proof that you will complete the job per the terms of the contract. If you are unable to perform, the surety will step in and make sure the project is completed per the contract terms. A bid bond is a type of construction bond that protects the owner or developer in a construction bidding process. It is a guarantee that the bidder provides to the project owner so that the owner will be compensated if the bidder fails to honor the terms of the bid. A payment bond is a surety bond posted by a contractor to guarantee that its subcontractors and material suppliers on the project will be paid. They are required in contracts over $35,000 with the Federal Government and must be 100% of the contract value. They are often required in conjunction with performance bonds.