Long gone are the days of undergoing a lengthy application process to buy or sell surety bonds thanks to our new partnership with Propeller Bonds—a new automated service offering no-touch market access.
This is a game-changer for small and large businesses alike.
What are surety bonds?
Think of a surety bond as a “100% Satisfaction or Your Money Back” guarantee. This three-party contract is put in place to protect one party from the debt, default, or failure of another. The surety acts somewhat as a buffer between the two by providing the money-back guarantee.
There are two types of surety bonds:
1. Contract surety bonds are written for construction projects. In this instance, a project manager would seek a contractor to complete the work. A surety bond is then purchased by the contractor prior to beginning the construction project. Should the contractor default, the surety bond is either used to employ another contractor or reimburse the project manager for any financial losses incurred. There are four types of contract bonds—bid, performance, payment, and warranty (also referred to as maintenance bonds).
2. Commercial surety bonds are written for a broad range of services. They guarantee a company or individual’s work and are required on the federal, state, and local levels. There are five types of commercial surety bonds—license and permit, court (also referred to as judicial bonds), fiduciary (probate), public official, and miscellaneous.
Surety bonds are mandatory whether you’re operating your business as a business-to-business (B2B) or business-to-consumer (B2C). It’s a way to offer clients financial peace of mind.
How does a surety bond impact the bottom line?
Offering an additional layer of coverage that guarantees your work is gold to consumers. It’ll reassure them that they are in good hands and could lead to future referrals. The surety bond starts a chain reaction and you soon become part of their daily dialogue. This is the most effective way to sustainably grow your business—word-of-mouth marketing (WOM marketing).
WOM marketing is, in essence, free advertising triggered by a consumer’s experience with a business’ services and/or products. More referrals lead to more clients. More clients equal more revenue.
When can I buy or sell a surety bond?
The better question is: When can’t you buy or sell a surety bond? Downey Insurance Group’s partnership with Propeller Bonds allows you to exchange surety bonds at your convenience.
The process is as simple as 1-2-3 and:
- Grants full market access to top surety insurance carriers.
- Eliminates tedious tasks like paper forms and long approval procedures.
- Provides instant gratification with surety bonds issued within seconds.
Propeller Bonds bring surety bonds to your fingertips, making it easy to start new projects and sign new clients without delay.
Does your work no longer require that you hold a surety bond? No problem. You can now easily sell an existing surety bond in an instant and receive confirmation all without leaving the comfort of your own home or office. You’re in complete control of your business timeline. What’s more, you can shop for all of your business needs in one place.
At Downey Insurance Group, we offer an extensive product line of commercial insurance plans. Protect your clients with a surety bond and then protect your business with excess liability insurance.
Contact us today to learn more about how we can help you grow your business.