“The importance of a surety bond in commercial activities: it is an indispensable prerequisite for the conducting of a business.” George Washington, First US President. The idea that a business is not complete without the mandatory insurance or bonding for its activities comes from the need to protect one’s assets. Surety bonds act as a guarantee that the borrower will pay his/her debts when asked to do so by a third party.
“Surety is of the greatest importance in small business. Without it, few people may start a business or carry on certain major activities. This kind of assurance is needed by many men in various stages of their business careers. For example, those who are in the manufacturing business or those who want to open a retail business.” Richard Seligman, author of Getting Started in Business: Tips and Techniques for Commerciality. Surety bonds help ensure that you can pay your vendors and subcontractors when they are due.
Without surety, business activity would not continue. Without surety, legal proceedings against the person or company whose contract has been violated cannot be initiated. Without surety, businesses cannot claim for lost time and money because of unforeseen events that have arisen during a business activity. Thus, a surety bond is very important in ensuring that these unanticipated events are properly taken care of.
Indeed, the need for a surety bond is present even in a small business activity. Why is this so? Simply because there are certain inherent risks involved in doing business. For instance, when you set up a lemonade stand business, you are subject to a wide variety of potential legal actions. A surety bond helps protect your assets from those that you are not sure of.
For surety bond insurance philippines or surety bond provider ph, contact iChoose.
