Does your company schedule construction projects involving U.S. tax payers' money? Are you about to begin a large-scale project and worried about your investors' money? In either case, performance bonds can be just what you need to protect your assets. They are issued by an insurance carrier to ensure your project is completed as per plan.
Protect Your Investment With the Benefits of Performance Bonds
In most cases, performance bonds are issued for projects that involve a government and/or municipality, such as roads, highways and bridges. Should something occur to prohibit the completely of the project, the performance bond can be used to pay for the project to be completed or hire the company that will be used to complete the project for you.
Quick facts about performance bonds:
- They protect the owner of the project; no one else can file a claim.
- They are available if a contractor fails to meet his contractual obligations due to a default, bankruptcy, etc.
- Contracts should be detailed and precise since performance bond benefits are only paid for specific contract violations.
- Losses must be quantifiable in order for them to be covered by bond benefits.
The quality of your contract, contract compliance and your understanding of the technical aspects of the bond is key. A failure in any of these areas can negate the relevance of your claim.
If you are interested in learning more about the benefits of performance bonds, or have concerns about your own performance bond, contact CCW Insurance today.
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