Operating a business can be a headache most days. In order for your company to thrive, you need to take the proper precautions for the future. A big part of this is making sure you have a comprehensive insurance policy in place. Of course, some industries benefit from alternative approaches to insurance. Surety bonds, for example, can be advantageous for some business owners. Look over these tips to see which fit is the right one for your company.
The Major Differences
According to experts in the industry, there are a few key differences between bonded vs. insured approaches. Surety bonds provide a guarantee that your business will be able to meet everything that will be expected of them. In certain states, a surety bond is actually required for a company to operate. Review your local requirements to get a better idea of whether this applies to your organization. Standard insurance policies, unlike surety bonds, provide coverage in the event of specific circumstances. Surety bonds are only needed when:
- Local ordinances require a bond
- When the nature of business activity requires a guarantor
- You do not need losses covered through insurance
Review All Details
Understanding which option is best for your business can take time. Review how surety bonds and standard insurance policies operate and select the right fit for the future of your brand.