BONDS - TYPES AND CLASSES

TYPES OF BONDS:

* License Bond                 * Performance Bond                  * Auto Dealer Bond

* Tax Bond                       * Payment Bond                        * Title Bond

* Contract Bond                * ERISA Bond                          * Crime Bond

* Utility Bond                     * Personal Guarantee Insurance * Bid Bond

Each bond and each situation is unique and requirements may vary. The easiest way to understand your needs and the needs of your company is to talk with an agent.

Some states require License and Tax bonds for different fields and specialties, although every state is different. Larger projects and owners may request Performance, Payment or contract bonds; and you should always talk with a program manager to get a program setup prior to pursuing anything involving these.

Government agencies have moved into requiring bonds for more and more sectors of business. These can include but are not limited to: Tax bonds, Title Bonds, Public Works, Utility and Auto Dealer Bonds.

If you are not sure of where to start feel free to contact us directly and we will point you in the right direction!

For more info contact: Adam@jaknappagency.com or John@jaknappagency.com

or you can visit: http://www.jaknapp.com/

Adam Griggs

VP - JA KNAPP AGENCY

Celeritas et Veritas - Promptness & Truth

Bonding - A Neccessary Evil

       

      With the current economic situations, pressing onward has been a trying effort for a lot of contractors. The caution project owners and general contractors are moving with is a difficult field to navigate and can cause delays in work, payment and strain working relationships.

       Now more than ever the need for Bonding has played a significant role in many areas of the country and is becoming more and more of a normal practice. Owners wishing to protect their investments look to bonding as a way to protect themselves, unfortunately a lot of negativity is placed on bonding from all directions. No one can control the future and not a single company or person can predict the outcome of todays economic climate, so it is important to know how you can protect yourself and navigate through the weather.

       Having a bonding program is essential, whether you are the project owner or the awarded contractor. Yes a bond is design to prevent any potential issues of performance and payments, but in no way does it make a negative outlook on the awarded contractor. If anything having a program will actually bolster your ability to perform with credibility as well as profitability. Many times an owner may even award a project based on the experience and outlook of a contractor, you may look better in their eyes than another un-bondable company even though the bids are fairly close and a bond may not even be needed.

       Overall having a bond program is just one more tool in your belt as an Owner, Contractor or Sub-contractor. Talk to a professional about getting a program together and ensure you are ready in the event a bond is requested or a job comes down to overall company stability.

For more information on bonding: Adam@jaknappagency.com
or visit: http://www.jaknapp.com/

- Adam Griggs
Program Manager/Risk Manager

JA KNAPP AGENCY