If you’re looking to learn more about surety bonds, Annex Insurance can explain and explore all options to determine the best policy.
As a service or product provider, your entire business model hinges upon fulfilling contracts. Your obligations go both ways — to the suppliers you need to pay for the materials they equip your production line with, and customers who count on your products and services. These are basic contracts of business that you need to meet and protect to preserve valued partnerships and secure your reputation as a reliable contractor. But how do you follow through on outstanding obligations in case of a massive business interruption?
Unfortunately, despite the best of intentions unforeseen circumstances and losses can prevent you from fulfilling contractual obligations. A natural disaster or economic downturn can easily hamper operations and impact profit, making it hard to pay suppliers and continue production to follow through on paid orders. For these, your business needs bonds or financial reserves to guarantee remaining obligations. If your company responds to large commercial RFPs or government contracts, having bonding in place is required to successfully bid on projects.
A surety bond is a necessary investment for businesses who provide services and trade on their reputation for excellent customer service. It is a secure alternative to a letter of credit and guarantees the financial stability of businesses in construction, transportation, telecommunications, energy, and other industries. Surety bonds also cover various bonds such as contract, bid, performance or labour and material payment, supply, license and permit, and judicial bonds.
At Annex, our brokers are here to help protect your business from the fallout of contractual obligations that cannot be fulfilled. We understand that extraordinary circumstances prevent you from providing quality work and service that your customers count on. And with our bonding agreements, you won’t lose a customer or valued partnership in the fallout. Our insurance brokers will equip you with necessary bonds and guarantee the compensation of affected parties to ensure the financial and operational stability of your business.
Annex is here to protect all that’s important to you and your business.