What is Contractor Bond?
To guarantee the performance of a contract in any project, a surety bond will get you covered. A surety bond is a contract between three parties which works as follows -the principal (you) , the surety (KYC Insurance), and the obligee -in which the surety financially guarantees to an obligee that the principal will act in accordance with the terms established by the bond.
Contractor Bond
To guarantee the performance of a contract in any project, a surety bond will get you covered. A surety bond is a contract between three parties which works as follows, the principal (you), the surety (KYC Insurance), and the obligee, in which the surety financially guarantees to an obligee that the principal will act in accordance with the terms established by the bond.
Contractor Bond will cover:
- Bid Bond: Provides financial protection to the owner if a bidder is awarded a contract but fails to sign the contract or provide the required performance and payment bonds.
- Performance Bond: Provides an owner with a guarantee that, in the event of a contractor’s default, the surety will complete or cause to be completed the contract.
- Payment Bond: Ensures that certain subcontractors and suppliers will be paid for labor and materials incorporated into a construction contract.
- Warranty Bond (also called a Maintenance Bond): Guarantees the owner that any workmanship and material defects found in the original construction will be repaired during the warranty period.
A contract bond, also called a performance bond, is a type of surety bond that guarantees a contractor will meet the agreed project terms. It can include deadlines, materials, and quality standards, and is usually issued by a bank or insurance company.
This bond protects customers against incomplete projects, even in cases like contractor bankruptcy.
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Contractors Licensing
To become an Contractor, you must fulfill the licensing requirements set by your state’s licensing board. This involves several steps, such as passing an exam, providing proof of insurance and submitting a bond.
Customer Service
Whether you need assistance with product details, have questions about your order, or want to inquire about our policies, we’re ready to help.
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Click to download a list of claims contact numbers for our carriers. For a carrier not listed, please contact our Customer Service team.
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Contractor Bond
To guarantee the performance of a contract in any project, a surety bond will get you covered. A surety bond is a contract between three parties which works as follows, the principal (you), the surety (KYC Insurance), and the obligee, in which the surety financially guarantees to an obligee that the principal will act in accordance with the terms established by the bond.
Contractor Bond will cover:
Bid Bond
Provides financial protection to the owner if a bidder is awarded a contract but fails to sign the contract or provide the required performance and payment bonds.
Performance Bond
Provides an owner with a guarantee that, in the event of a contractor’s default, the surety will complete or cause to be completed the contract.
Payment Bond
Ensures that certain subcontractors and suppliers will be paid for labor and materials incorporated into a construction contract.
Warranty Bond
Guarantees the owner that any workmanship and material defects found in the original construction will be repaired during the warranty period.
What about Contract Guarantees?
A contract bond, also called a performance bond, is a type of surety bond that guarantees a contractor will meet the agreed project terms. It can include deadlines, materials, and quality standards, and is usually issued by a bank or insurance company.
This bond protects customers against incomplete projects, even in cases like contractor bankruptcy.
Surety bonds are an important risk mitigation tool, but it’s essential to know that insurance and surety bonds are two different types of tools. The terms “surety bond,” “surety bond insurance,” and “surety insurance” are often used interchangeably, causing some confusion for consumers. It’s important to note that surety bonds are not insurance.
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How can we help you?
Contractors Licensing
To become an Contractor, you must fulfill the licensing requirements set by your state’s licensing board. This involves several steps, such as passing an exam, providing proof of insurance and submitting a bond.
Customer Service
Whether you need assistance with product details, have questions about your order, or want to inquire about our policies, we’re ready to help.
Carrier Information for Claims
Click to download a list of claims contact numbers for our carriers. For a carrier not listed, please contact our Customer Service team.