Surety bonds have become vital to businesses of all sizes — and across many industries. They let customers hold businesses to certain performance, integrity and transparency standards — thereby maintaining accountability.
While surety bonds are particularly popular in the retail, mortgage brokering and automotive industries, they've become mainstays in any job area requiring a certain degree of trust. They aren't exclusively used by service customers, either. Every year, more businesses get bonded and insured to further strengthen their relationships with customers.
If you're on the fence about getting bonded, consider these five great benefits.
Benefit One: Increased Customer Confidence
If your business is bonded and insured, it'll reflect its ability to adhere to, and fulfill, financial guidelines. This builds a high degree of reputability and trust — thereby enhancing your customers' respect for your brand.
Benefit Two: Reduced Unqualified Competition
Surety bond applicants need to undergo a strict review process before getting bonded. This process examines the business' financial security and overall qualifications in its industry. As a rule of thumb: Any applicant that isn't qualified enough, or which has a questionable history, will have difficulty getting bonded.
As a result, unqualified businesses tend to not make the cut. Because having a surety bond puts your business on a higher level of customer respect, you'll face less competition from other businesses in your industry.
Benefit Three: Penalty Prevention
Some industries require businesses to have surety bonds. Debt collectors, contractors, car dealers and even private investigators need to have security bonds. By having a permit bond, you guarantee you'll complete any business obligations in a faithful, ethical manner.
Benefit Four: More Business Opportunities
Being bonded opens additional avenues of business relations. By proving your business' financial reliability, ethical practices and consistency, you'll have more options when it comes to pursuing public contracts. You'll also be more attractive to loaners — who prefer bonded entities.
Benefit Five: Claim Protection
At some point, your business will face a degree of legal risk. By having a security bond, it will have a significant resilience to claims. Not only will you have access to a professional network of attorneys, accountants and estimators, but you'll also have a verifiable degree of trustworthiness.
Regardless of your industry, it's a good idea to obtain a security bond. Take advantage of credibility and stand out in your line of work. This additional form of insurance is invaluable to those who secure it, maximizing and displaying incomparable integrity.