Bonds insurance is an important type of insurance policy for business owners in certain lines of work. Here at Allen Jones Insurance Agency, we want to help business owners in Seguin, TX and the surrounding areas better understand this type of insurance.
What Is Bonds Insurance?
This type of insurance is designed to work among three parties. The insurance company, the business purchasing the insurance, and a third party whose performance is being insured. This means that you as the employer are purchasing the insurance coverage to cover your employee’s behavior and performance when doing their job.
This type of insurance is often needed for companies that are working inside people’s homes, working with their children, or working on their vehicles. You need this type of coverage any time there is a chance that an employee’s behavior or performance might cause damage to property or injury to an individual.
How Does This Coverage Work?
When you have bond insurance in place, it means that the insurance policy will pay for expenses of a liability that might result from your employee’s behavior or performance. For instance, if you owned a house cleaning service in which employees enter clients’ homes, and an employee damaged something in the home. A claim could be filed to pay for the expense of the damage.
What Happens Without Bond Insurance?
Certain types of businesses need bond insurance to even operate legally. In addition to this, potential customers and clients want to see that you have this type of insurance place before they will choose to do business with you. This is an investment you make to bring peace of mind to customers and to protect yourself from liability.
We Are Here To Help!
If you would like to learn about commercial insurance and how it can help your business, please contact us at Allen Jones Insurance Agency serving Seguin, TX and the surrounding areas.
