Insurance Bonds

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

• Bid Bond – Ensures the contractor who wins a bid will enter into the contract and provide the required payment and performance bonds if awarded the project.
• Payment Bond – Guarantees that suppliers, subcontractors, and laborers are paid for work performed under the contract.
• Performance Bond – Ensures the contracted work will be completed according to the project’s terms, conditions, and specifications.
• Ancillary Bond – Guarantees completion of obligations that are essential to the contract but not directly tied to performance, such as permits, site cleanup, or other required services.