Month: April 2025

Most people have seen a business advertise that it is insured and bonded. Many companies use bonds, but it’s essential to understand the difference between bonds and insurance to ensure that, as a business owner, you know which one to get and, as a consumer, you know how much protection you have.

Understanding Bonds

Bonds offer financial protection for Alabama consumers, subcontractors, and others who trust someone to perform a specific task. A bond is when a person or company must complete a specific action. If they don’t, they owe the amount of the bond.

Many people use bonds to get out of jail, but these require them to appear in court. Companies may also use Surety Ins Inc. bonds to agree to do a specific job and fulfill those obligations. Bonds can ensure someone keeps their word or does a specific thing.

Understanding Insurance

Insurance also provides protection, which is why many people confuse bonds and insurance. However, insurance provides protection against other things. It can provide protection against liability claims, job-related injuries, and property damage.

For example, if a tree service accidentally damages a fence or a vehicle while removing a tree, liability insurance would compensate the homeowner for the damages. If a company is bonded, it would have nothing to do with the damages caused as long as the tree service completed the job as agreed upon.

Many companies advertise that they are bonded and insured. This is popular among service professions, such as tree and roofing companies. Many other businesses use bonds to establish trust with customers. Contact us to learn more about the bonds offered at Surety Ins Inc. today. We’re currently serving the Alabama area.