When you own your own business, you need to know whether a surety bond really is a good fit for you or not or which types of surety bonds are a good fit. The key question, as all questions ten to do with a small business owner, comes down to what it costs and what it pays. If it fails to pass either one of these tests, it is no good. You will find that there are many small businesses that do not need a surety bond, yet still have them. Others need them desperately, yet don’t have them. Where do you fit in that range? IF you are asking whether you need a surety bond, you are not alone. There is information you deserve to know about them, and whether or not it could really save your company.
The first thing you have to look at is your kind of exposure. If you are not in a clearly definable situation with your normally fulfilled contract work where there is a consistent risk of you either not fulfilling part or all of that contract, or damaging something in the process. This is the ideal situation for a surety bond, and if you do not have that scenario, there is a good chance that a surety bond is not for you.
However, if the reverse is true, you could need a bond. This is where it gets heavy. If you need a surety bond, your exposure could easily exceed 50,000.00. Can you absorb that loss?