Have you ever hired a contractor to renovate your home only to have the bad experience of the contractor’s shoddy performance or not completing the job as planned? Unfortunately, these types of situations happen too often. And that’s why surety bonds were created.
A contract is drawn up detailing a project before a contractor begins work. A surety bond essentially ensures that the job will get done according the expectations and guidelines laid out in the contract. When a contractor does not meet these expectations, the project owner could face financial losses. However, when you hire a bonded contractor, the company that issued the bond becomes responsible for such losses, including hiring a second contractor and the costs of finishing/fixing the job. In return, this prevents the client from suing the first contractor.
When a contractor purchases a surety bond, it’s a sign of his or her commitment to professional responsibility. In fact, many of these contractors are sought after and may see a high enough boost in business to recoup the cost of the bond. Their desirability may also help put the more shady contractors out of business.
When it comes time for a contractor to purchase a bond, it’s important for him or her to speak with an independent insurance agent to learn about the various options that are available across the industries. Certain bonds may also be required for work on government projects as opposed to personal homes.
Learn more today. Call Insurance Planning Service at (734) 421-9900 for more information on Michigan surety bonds.