Many Pennsylvania Businesses Need Surety Bonds

Many Pennsylvania Businesses Need Surety Bonds

surety bonds in Pennsylvania

The State of Pennsylvania requires that certain kinds of businesses purchase surety bonds in compliance with regulations. The bonds not only ensure that ethical and legal practices are followed but also allow for claims to be filed by those who might be financially injured as the result of poor business practices. Contractors in the construction industry, for example, are required to have surety bonds in Pennsylvania.

Insuring Building Contractors

If you are in the construction business and are seeking insurance coverage, you can turn to experts who specialize in providing your industry with surety bonds in Pennsylvania. These generally fall into five main categories:

Bid Bond: Ensures that the contractor will perform according to the bid price and provide performance and payment bonds
Performance Bond: Protects the property owner from financial loss if the contract terms and conditions are not met
Payment Bond: Ensures payment to laborers, subcontractors and suppliers of building materials
Labor and Materials Bond: Covers project labor, materials and equipment in the event the contractor fails to pay
Maintenance Bond: Provides a guarantee against defects in the project for a specified period of time

Since they deal with many sensitive issues while engaged in any construction project, contracting firms know that this kind of insurance is essential. An experienced insurance agent who specializes in surety bonds in Pennsylvania can provide you with the exact coverage you need.