Surety Bonds

Does My Startup Really Need a Surety Bond?

02.23.2020

Fostering a startup takes exceptional tenacity and patience. From the moment of launch, it is crucial for business pioneers to earn and nurture customer trust and establish legitimacy within the marketplace. One effective method nascent businesses utilize to soften risk for their consumers and cement validity is by purchasing a surety bond.

Surety bonds are a three-party agreement between the surety, obligee, and principal. The contract guarantees the surety obligates itself to the obligee for the default of the principal. There is a plethora of reasons why a new business should obtain a surety bond. First, in numerous corporate sectors, the state or federal government will ask a business to purchase a surety bond. Some of these industries include auto dealerships, mortgage brokers, construction and maintenance contractors, travel agents, freight brokers, suppliers of durable medical equipment, winemakers, and collection agencies. Hence, when launching your establishment, be sure to conduct research on if a bond is required by law in your field.

Second, holding a surety bond indicates to your customers that your business will conduct its practices in an ethical and legal manner. Since most startup businesses have not yet established their reputation, investing in a surety bond from a reputable and secure surety amplifies a durable commitment to patrons to taking standards and ethics seriously and confirm customers will be safeguarded in the event of a dispute.

Fast and Affordable Surety Bonds

Colonial Surety offers surety bonds to startups online with no hassle or middlemen. We understand running a business can take up most of a business owner’s time. That’s why we offer surety bonds online instantly! Simply go to our website, get a quote, fill out the information provided, satisfy the underwriting requirements, and put in your payment method. You’ll then be able to print or e-file your bond and get back to operating your business. Contact us today to get your surety bond today.