As reported in www.businessinsurance.com, as private construction is finally starting to pick up, contractors my be asked to post performance and payment bonds this time around. the recession caused a lot of financial difficulties for a lot of contractors. Some of these contractors were working for long time private clients and ended up costing the owners money. A payment bond basically guaranteeing the contractor delivers a lien free project. The performance bond guarantees the job will be built according to the plans and specifications.
With many private owners requiring surety bonds that had not in the past, a lot of contractors are now looking for that ever elusive first bond. the process can be overwhelming and the best advice, find an agent and agency that specializes in surety bonds. Working with an all lines insurance broker is the insurance equivalent of going to your general practice physician for heart surgery. General practice insurance agencies are very good at placing insurance, surety, on the other hand is much more like getting a loan than an insurance policy. An agency that specializes in surety bonds can save a contractor a lot of pain and aggravation through the underwriting process.