What is the key difference between a insurance policy and a surety bond?
Ever wondered how a surety bond and insurance are so similar? This is the key difference between a insurance policy and a surety bond company. While insurance companies pay out to any person to whom the contractor is liable, surety bond companies are solely focused on the client’s best interest. By doing so, the surety bond company provides a very valuable service. Because contractors of every stripe are impacting the lives of their clients in a myriad of ways, it is important that the client be made whole should anything go wrong, even accidentally. If the contractor should leave something out, do poor work or something else similar, this is where the client is guaranteed by the surety bond. By having the surety bond in place, the client gets peace of mind and the contractor gets work.
