Insurance Bonds

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What is an Insurance Bond?

An insurance bond ensures contract completion in the event of contractor default and are typically required by project owners when seeking a contractor to fulfill a contract.

The contractor obtains a bond so the insurance company is obligated compensate the project owner for the financial loss incurred if the work is not completed.

Typical Insurance Bond Types

Although there are many types of insurance bonds, the four most common types needed by business owners are:

  • Bid Bond – Ensures the bidder on a contract will enter into the contract and furnish the required payment and performance bonds if awarded the contract.
  • Payment Bond – Ensures suppliers and subcontractors are paid for work performed under the contract.
  • Performance Bond – Ensures the contract will be completed in accordance with the terms and conditions of the contract.
  • Ancillary Bond – Ensures requirements integral to the contract, but not directly performance related, are performed.

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(770) 645-8088
Fax: (678) 720-9089
795 Holcomb Bridge Rd
Suite B
Roswell, GA 30076

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