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What Is Bond Insurance for a Business?

In some industries, clients may require surety bonds before they agree to work with your business. Surety bonds protect the client because it guarantees that your business will honestly and faithfully perform all of its duties and comply with the law. If there’s an issue, the client can file a claim with the surety to cover the costs to fix the problem. If this happens, the surety will require reimbursement from your business.

What Does ‘Insured’ Mean for a Small Business?

An “insured” small business means it has coverage to protect against certain claims and risks. Different insurance policies protect businesses against financial losses and lawsuits. There’s not a one-size-fits-all insurance policy, so businesses buy multiple policies to protect against various claims.

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