One of the more challenging aspects of any undertaking is thoroughly understanding all of the jargon that surrounds that undertaking. And, when it comes to Contractors, one of the more difficult areas is that of being properly Bonded. That’s why it is imperative that if you are in the Construction Business you become completely familiar with GLENDALE, AZ CONTRACTORS AND UNDERSTANDING WHAT BONDING INSURANCE COVERS ON A COMMERCIAL CONSTRUCTION PROJECT.
“You know,” Jim Bivona of Bivona Insurance Group, LLC, an Independent Insurance Agency that services the Phoenix Metro area regarding Insurance including Phoenix, Scottsdale, Glendale, and Peoria Arizona to name just a few, shared with a wry smile in his voice, “I would never think that I could accurately figure out how many yards of concrete it would take to form a proper base for an office building, but you can’t believe how many Contractors I encounter who feel they can do just fine in the realm of purchasing the proper, and adequate, Bond for a project they are working on. “In a way,” he added, “it’s more than a little sad when their lack of research comes back to bite them.”
Bivona’s concern is understandable. In fact, many contractors labor under the misconception that Construction Surety Bonds are the same thing as an Insurance Policy, not realizing that they are separate from Insurance. That’s why it is important to have at least a cursory understanding of the following terminology:
SURETY BONDS – These are not an Insurance Policy – – they do not protect you in the event of a Construction Liability. Rather, they only guarantee that you fulfill the obligations stated on the Bond.
TYPES OF BONDS AVAILABLE – – The two Contractors probably need to be the most aware of are Surety Bonds and Contract Bonds.
CONTRACTOR BONDS – – Break down into three basic categories: Payment Bonds; Bid Bonds; and Performance Bonds.
“While Bonds are not Insurance,” Bivona pointed out, “quite frequently a Contractor will need to have Insurance and the various Bonds. That’s why,” he continued, “it really behooves a Contractor to find an Independent Agent that they can trust and rely on, allowing them to concentrate on the Bonds and Insurance needs while they concentrate on the Construction Challenges.”
As you can see, GLENDALE, AZ CONTRACTORS AND UNDERSTANDING WHAT BONDING INSURANCE COVERS ON A COMMERCIAL CONSTRUCTION PROJECT certainly is not something you want to ignore if you ARE, in fact, intent on making sure your Contracting Business survives! As a result, you should contact Jim Bivona at 623-256-1000 with any questions, and he will be happy to discuss this concept with you in greater detail, and suggest some ways you may be able to improve your Business Future.
To learn more about the BIVONA INSURANCE GROUP, LLC go to www.bivonainsurance.com.
(To learn more about this issue, check out “Contractors & Bonds”)