Bid Bond

A Bid bond makes sure that contractors submit serious bid proposals. These bonds reassure project developers that bidders have the financial credentials necessary to accept the job. If a bid is selected and the contractor declines the job or retracts the bid, the project developer can make a claim on the bond to recoup the difference between that bid and the next-highest bid.

employee dishonesty bonds
Bonds for all your business needs

A Bid Bond guarantees that the obligee will be paid the difference between the principal’s tender price and the next closest tender price. This action is only triggered should the principal be awarded the contract but fails to enter into the contract, as agreed, with the obligee. The bid bond penalty is generally ten percent of the bidder’s tender price. Contractors prefer the use of Bid Bonds because they are a less expensive option and they do not tie up cash or bank credit lines during the bidding process. Owners and general contractors also use Bid Bonds because they establish and confirm that the bidding contractor or supplier is qualified to undertake the project.

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A lot of companies quickly realize their insurance needs go beyond basic liability and commercial auto insurance. Some jobs require specific types of coverages such as bid bonds that gives you protection that may fall outside of basic coverage.

Other Types of Insurance We Offer

Contractors General Liability Insurance

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Workers’ Compensation Insurance

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 Tools & Equipment Insurance

Bid bonds make sure that contractors submit serious bid proposals. These bonds reassure project developers that bidders have the financial credentials necessary to accept the job. If a bid is selected and the contractor declines the job or retracts the bid, the project developer can make a claim on the bond to recoup the difference between that bid and the next-highest bid. Learn More

Property Insurance

Performance bonds guarantee that contractors complete projects according to contractual terms. If a contractor fails to do so, the project developer can make a claim on the bond to access funds that can be used to pay a second contractor to finish the job. The Federal Miller Act requires that performance bonds be used on all federally funded projects worth $100,000 or more. Learn More

Commercial Auto Insurance

Business service bonds protect consumers from the potential theft that could be committed by company employees who work in clients’ homes or offices. Business service bonds are optional insurance products that are purchased by many different types of businesses, such as. Learn More

Surety Bonds

  • Contractor License Bonds
  • Contract Bonds
    • Bid Bonds
    • Performance Bonds
  • Business Bonds
    • Employee Dishonesty Bonds