Bonds in San Antonio, TX

There are many things that can go wrong in the fast-paced business world. As you and your employees strive to deliver quality and timely services to clients, you may eventually make a mistake or oversight. In these situations, having invested in the right loss control measures and financial securities, such as bonds, can make all the difference.

What Are Bonds?

Bonds are a type of financial product sold by insurance companies that can provide a means of compensation for parties that enter into agreements with your business but then suffer losses for which you are at fault. While bonds may often be referred to as bonds insurance, they differ from traditional insurance policies by typically being paired with a specific project or contract, rather than providing coverage for the policyholder throughout a set period.

How Do These Products Work?

Bonds can come in many forms, but generally serve the purpose of being able to compensate clients, customers and others while averting the need for lawsuits, which could be costly, time-consuming and damaging to your reputation. In many cases, these reassurances may be necessary if your company hopes to work with certain clients. Some projects, such as government contracts, may often require you to retain bonds before even being eligible for the job.

What Are the Types of Bonds?

There may be many subcategories to select from, but two of the most common forms of bonds include the following:

• Surety bonds can help your clients and customers recoup losses should you fail to deliver as promised. This classification is largely made up of contract bonds and commercial bonds, each of which include several of their own subtypes.

• Fidelity bonds, also known as honesty bonds, may provide compensation should you or your employees, including contract workers, commit dishonest, fraudulent or criminal acts that impact clients.

Learn More

Contact Bienvenido Insurance today to learn more about bonds and secure your financial interests.