When you open a business in the Seguin, TX area, you’ll need to file for a business license, set up a merchant account, and purchase insurance. Some types of businesses require the company to provide it qualifies as “bonded and insured.”
That typically applies to construction firms and financial firms. If you need to go inside an individual’s home, the local or state government may require a surety bond. This protects your customers from loss if you or your workers perform shoddy work.
Bond Insurance: What You Need To Know
Bond insurance isn’t a common policy type. Your typical candy store or barber shop doesn’t need bond insurance. This specialized type of policy provides enhanced protection of finances.
Each local government sets business requirements for commercial entities within its borders. Since Allen Jones Insurance Agency serves Seguin TX and its surrounding areas, we won’t try to address every town’s requirements here.
What you should know
General contractors, plumbers, electricians, masons, etc. typically carry bond insurance. Financial institutions also frequently carry this type of insurance. Any type of business that handles money for financial instruments, such as insurance, loans, stocks, other assets, purchases bond insurance.
You’ve probably watched a TV commercial that ended with the words “bonded and insured.” Not only does the law require that but knowing this should provide the consumer with some peace of mind. It lets them know that, regardless of what happens, they’ll get compensated.
Purchasing the bond and/or bond insurance ensures that you can provide the funds to compensate them if you use the wrong joists in a construction project or your employee embezzles from the stock fund.
Contact Us Today
Contact Allen Jones Insurance Agency serving the greater Seguin, TX community, for more information on bond insurance. Let us help you legally insure your business.