Insurance Bonds

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What is an Insurance Bond?

An insurance bond ensures contract completion in the event of contractor default and are typically required by project owners when seeking a contractor to fulfill a contract. 

The contractor obtains a bond so the insurance company is obligated to compensate the project owner for the financial loss incurred if the work is not completed. ​

Typical Insurance Bond Types

Although there are many types of insurance bonds, the four most common types needed by business owners are:

• Bid Bond - Ensures the bidder on a contract will enter into the contract and furnish the required payment and performance bonds if awarded the contract.
  
• Payment Bond - Ensures suppliers and subcontractors are paid for work performed under the contract.
  
• Performance Bond - Ensures the contract will be completed in accordance with the terms and conditions of the contract.
  
• Ancillary Bond - Ensures requirements integral to the contract, but not directly performance related, are performed.

Contact us to learn more about the right insurance bond for you.

(310) 747-4157​
2501 W 237th Street
Suite A
Torrance, CA 90505​
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