5 Bonds That Small Business Owners Need to Get Acquainted With
Small businesses need several things to get the ball moving. Some of those things are hard to understand, especially as a newbie, but it is important that you try your best to learn.
One thing that most businesses are going to need are surety bonds. There are a number of them, and the kind a business will need depends on the nature of the business. The following are some common surety bonds that businesses should consider.
1. License Bonds
Perhaps the most important surety bond to get is the license bond though the permit bond is important, too. Both of these bonds are there to protect your customers and your business as a whole. These bonds are there to ensure that any claims made against the business are made against the bond instead, which is the reason businesses should get them as soon as possible.
Of course, this type of bond is needed for a business to obtain the legal status to operate. Some of the most common licenses and permit bonds include the contractor license bond, the notary bond, and the broker bond though there are many more. It is important that business owners stick to experienced surety bond experts like the people at JW Surety Bonds.
2. The Fidelity Bond
There are a lot of things a business owner has to worry about and protect a property from. One thing that many business owners have to deal with is dishonest employees. These individuals can steal, embezzle, or commit fraud, which can hurt your business and your reputation. The fidelity bond exists to help ensure that you are protected from these types of dangers.
This is not to say that you will not find honest employees, but it is always better to be safe rather than sorry. The bond that helps protect businesses from dishonest employees is usually called the Commercial Crime Fidelity Bond though it might go by other names. Be sure to ask about the kinds of bonds that could protect your business from employees who might harm your business. It would be nice to live in a world where people were honest, but that is simply not the case.
3. The Business Service Bond
Bad employees come in many forms; some might attack your business, but others might steal from your customers. Hopefully, this never happens to you, especially because it is very hard for a business owner to regain their customer’s trust, but the reality is that it may happen. This is why a business owner needs to consider getting a good business service bond.
There are a lot of ways an employee can steal from customers; for example, cleaning crews have access to private areas where customers might have left personal belongings. This could happen in private pools or hotels, just to name a few places, which could put a business in a bad position. This bond will protect your business from the consequences of such a crime.
4. The Contract Bond
These types of contracts are specific to your type of business. Some of them are set up so that deadlines are met between business partners, while others are there to ensure that projects stay within budget. These bonds protect your business and any third party business that you might enter into an agreement with.
Some of the bonds that fall into this category include things like bid bonds, performance bonds, and payment bonds. The good thing about these types of bonds is that you do not have to purchase them before you open up shop. These could wait until you’re ready to start your project. This should give you some time to prepare for the cost of these bonds, which may seem excessive but are worth it for your own protection.
5. The Court Bond
The court bond is another kind of bond that business owners need to consider. It may not be what business owners want to experience, but there could be a time when a small business finds itself in a civil court proceeding. These kinds of courts usually require a business to have this type of bond ready in order to continue.
There are a number of bonds to pay attention to regarding the courts, like the appeal bond, the injunction bond, and the cost bond to name a few. Having these bonds ready should help speed up the process. Time is money after all, so making a court issue go away quickly is prudent.
Hopefully, some of this information makes it easier for you to understand how bonds can help a small business owner. Be sure to talk to a surety bond expert to get more information.