Surety Bonds for Your New Paving Company

Starting a new paving business can be an exciting opportunity. It can bring you and your employees a new opportunity to grow profits and to help others. But, like any new venture, you’ll need to make the right decisions about how to operate your business. And, you’ll need to find a way to convince others that you are the right paving company to work with in the area. How can you do this? One good place to start is with surety bonds. In fact, you may even need them to get started.

What Is a Surety Bond?

Surety bonds are not the same as business insurance, but they do complement each other and both are very important to your paving business. This type of bond is a contract between three parties. Those parties include you, the business owner, the company issuing the bond, and the person you are providing a service to. These bonds work to guarantee that you’ll do what you are promising to do.

If you fail to provide the paving service promised in the way you were contracted and promised to do so, the surety issuer can help to compensate the client for the work that you didn’t do or the repairs that become necessary. You promise to repay the surety company in this event. It does not simply cover a claim like business insurance does. You are still responsible for paying the surety issuer back.

Why Do You Need Them?

Paving businesses, like most contracting and construction businesses, are all about promises. You promise to provide a very specific service with a very specific end result to the client. He or she has to take your word for it. But, with surety bonds, the customer gains some level of financial peace of mind. If you do not do what you say you are going to, they can file a claim against the bond to recoup some of their losses. That level of security helps companies to minimize the risk to their customers and encourages them to work with you. Paving companies should consider these bonds a key part of getting started within their industry. They can prove to be just as important to you as traditional business insurance is.