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When in need of surety insurance, Simon Insurance Agency is the bonding company Florida residents look to. Simon Insurance is Florida’s trusted source for all types of surety bonds.
We offer two types of bonds that are important to contractors. They include the bid bond and the performance bond. A bid bond guarantees that the party who is awarded the contract will perform the job specified in the contract and will add no further costs nor expenses to the project.
Bid bonds show proof to the owner of a project that the contractor is capable of carrying out the project. The project owner may not know the contractor’s financial status or if the contractor has sufficient resources to complete the project. An owner is much more likely to award a project to a contractor who has secured a bond because if the contractor fails to meet the specifications in the contract, the owner can then receive compensation from the bond. If the contractor fails to meet the obligations of the bond, both the contractor and the surety are also liable for costs the owner incurs in awarding another contractor.
For all federal projects, the Miller Act requires contractors to secure bonds. Many private projects also require bonds to guarantee protection from risk.
Closely related to these bonds are performance bonds, sometimes also referred to as contract bonds. However, the terms for performance bonds state specifically that a certain “project” will be completed. The terms for contract bonds are more general as to the fulfillment of a “contract.”
The concept of surety bonds is not new, as there are records of such bonding as early as 2700 B.C. Surety laws existed in the Roman Empire in the first century A.D.
Are you a contractor whose project requires bonding? We at Simon Insurance are experienced in providing our clients with various types of surety insurance. We are a premier bonding company in Florida and can help you obtain your bond, whether your credit is excellent or unsatisfactory. Just give us a call at 561.948.4141 for a free quote and consultation.