Bonds in Flower Mound, Texas

As part of the bustling Dallas-Fort Worth area, businesses in in Flower Mound, Texas, depend on each other to grow and succeed. However, while your company may strive to deliver goods and services as promised, there may be times when this becomes impossible. That’s why your risk management and loss control measures must be able to offset other parties’ losses for which you may be at fault. Understanding and securing bonds may be critical.

What Are Bonds?

Also known as commercial bonds, these financial tools are often sold by insurance companies and can provide financial protection similar to your business insurance portfolio. However, while insurance policies can address various incidents occurring within a predetermined coverage period, bonds are often purchased for a sole job or client. Coupling your insurance coverage with suitable bonds allows your business to enjoy stout financial security and peace of mind.

Types of Bonds

These loss control measures may come in many forms. The right investments may be determined by your company’s risk tolerance, the sector in which it operates and your clients’ preferences. Specifically, you may wish to familiarize yourself with the following common types of bonds:

• Surety bonds may include many subsets, including contract, construction, performance, and license and permit bonds. These arrangements typically establish a means of compensation should your business prove incapable of delivering as promised. Bonds can help clients recoup losses and cub the need for lawsuits.

• Fidelity bonds can also come in various forms, including business services bonds and employee dishonesty bonds. These products may be suitable if your employees work at clients’ locations or otherwise have access to their property and assets. If a worker commits a dishonest or criminal act, fidelity bonds can compensate affected parties.

We’re Here to Help

Contact Consolidated Insurance Markets in Flower Mound, Texas, today to learn more about bonds.