Business Insurance

JLA Partners Insurance

What is an Insurance Bond?

JLA Partners Insurance can be your single source for all of the insurance bonds you need to place bids or sign contracts. We understand how important getting it done the right is, which means our team of experts will get it done quickly and easily. 

Do I need an Insurance Bond?

If you are a contractor seeking to place a bid on a project and/or enter into a contract with a project owner, you will probably require an insurance bond. An insurance bond ensures the completion of the contract in the event of default by the contractor. Many project owners now require bidders and potential contractors to obtain an insurance bond when seeking to fulfill a contract. The insurance bond obligates the insurance company to compensate the project owner for financial loss if the contract is broken or the work is not completed.

What does an Insurance Bond cover?

There are a wide variety of different types of insurance bonds. However, the four most commonly-required insurance bonds include:

  • Bid Bond: Ensures that the bidder who is awarded the contract will enter into it, as well as furnish the required payment and performance bonds.
  • Payment Bond: Ensures that the contractor fulfills all necessary payments to suppliers and subcontractors for work performed under the contract.
  • Performance Bond: Ensures that the contractor completes the contract in accordance with all terms and conditions listed in the contract.
  • Ancillary Bond: Ensures the fulfillment of non-performance related requirements integral to the contract.