Frank Hursh, owner of Katy, TX based Texas Energy Insurance (http://www.texasenergyinsurance.com) said businesses in certain sectors of the economy are required to carry bonding insurance and could face stiff fines or shut down if they fail to do so.
“Failing to carry bonding insurance is serious, if federal laws require your business to be bonded. The good news is that business bonding insurance is similar in some ways to the business insurance and can easily be purchased through business insurance agencies,” Hursh said in his office in Katy, Texas.
He said that unlike general business insurance, business bonding insurance offers guarantee of job performance.
“Bond insurance is very different from regular insurance because instead of covering general business liability, it offers guarantee to the bond insurance holder should something unforeseen happens like failure to complete contracted assignments,”
Hursh said companies that do business with the federal, state or local governments are typically required to be bonded or carry bonding insurance before bidding on certain jobs.
“Most governmental agencies require bonding insurance before companies and licensed contractors are allowed to bid on contracts, for example. Companies without adequate bonding may be barred from such transactions and that could be costly for those businesses, “he added.
Hursh said insurance agencies like Texas Energy Insurance are the best places to get bonding insurance.
“Unlike general business liability insurance, bonding insurance companies evaluate credit and financial assets. Shopping around for bonds is not a good idea. Surety companies often reject applicants if they get submittals from too many agents. It’s better to find a reliable insurance agency that you trust, work with them to determine your bond insurance needs and to find the right bond insurance product from the right provider,” Hursh said.
In Sugar Land, Katy, Houston, Pearland, Fulshear, Brookshire, Round Rock, Pattison, Richmond and Rosenberg, call Texas Energy Insurance toll-free at (877) 952-1010 or go to http://www.texasenergyinsurance.com/