Not James Bond - Performance Bond!

Thank goodness I don't need to be bonded for the Hot Dog Truck! If I needed a performance bond to conduct my business, I'd have to go into another business!

A performance bond is basically a guarantee that work-often times it is a construction project- will be done according to the contract and will be completed on time.

A bond is like an insurance policy that will never be used. Insurance policies expect you to file claims. A performance bond is a guarantee that funds will be made available (usually from the person or company obtaining the bond) should something go wrong. If you ever have to use a surety bond, you'll never be able to get one again! Performance bond rates usually don't change over time either unless the financial circumstances of the entity obtaining the bond change. Underwriting a bond is such a costly pain in the backside, most folks stick with what they have anyway. Since the companies who issue performance bonds lost a ton of dough 8-10 years ago, bond companies have become tighter and prices are higher; there's no more cheap bonds out there!

It sounds complicated, and unless you're in a business that requires bonding it is probably very foreign to the reader. But if you're in a business that requires bonding, its important to work with a company with expertise issuing performance bonds. As with any financial product, you want to work with a company that will educate you about your options and get you the most competitive rates. JW Bond Consultants will do just that for you.

I just hope I never need them!

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