Call us today: 720-800-9495
Call us today: 720-800-9495
All types of businesses need bonds to operate and we’re here to help you with the process. Whether you’re opening a new business and need a licensing bond or a contractor requiring a bid bond to compete for a new project, Mountainside Insurance Management has the relationships and experience to help you obtain the appropriate bond.
We will explain the underwriting requirements for the specific bond with your CPA to improve your financials and accounting methods, and deliver broad access to markets to help you establish a solid bonding history and provide you with the flexibility to grow your business.
Many contractors assume a bond works like insurance. It does not. With insurance, you pay a premium, and if a covered loss happens the insurance company pays the claim and does not ask you to repay it.
A surety bond protects the party that requires it, such as a project owner or government agency. The surety guarantees that you will meet your obligation. If a valid claim is paid, you are expected to reimburse the surety. In that way a bond is much closer to a line of credit: the surety extends its financial backing on your behalf, and it approves you the way a lender would, based on your credit, financial statements, experience and work history.
That is why bonding capacity matters. It is built over time, and stronger financials mean you can bid larger projects. We explain what underwriters look for and work with you and your CPA so you can build the bonding capacity your business needs to grow.
We can secure commercial bonds for you, including License and Permit Bonds; Court, Notary, Probate or Public Official Bonds, and State Professional Bonds; and Warranty and other miscellaneous bonds to support your business needs.
Contractors in Colorado and across the country rely on us for contract surety bonds. We work with surety markets to help you qualify for the bonds you need to bid on and win public and private projects.
Need a bid bond for an upcoming project, or a performance bond after you win the job? Call (720) 800-9495 or get a quote. Contract requirements usually call for insurance as well, so see our contractors insurance programs for general liability and workers comp.
A surety bond is a three-party agreement where a bonding company (the surety) guarantees you will fulfill a contractual or legal obligation to a third party. Unlike insurance, which protects you against your own losses, a bond protects the other party, often a project owner or government agency. If a valid claim is paid, the surety expects you to reimburse it rather than absorb the loss the way an insurer would. That is why a bond works more like a line of credit than an insurance policy: the surety extends its credit and backing on your behalf, and approves you based on your credit, financials and experience.
A performance bond guarantees you’ll complete a contracted project according to its terms; if you don’t, the bonding company covers the cost of completion. A payment bond guarantees you’ll pay your subcontractors and suppliers on the project. Public construction contracts often require both together.
Yes, they serve different purposes. General Liability covers third-party injury or property damage claims, while a bond guarantees contractual performance or financial obligations. Many public projects and larger private contracts specifically require bonding before you’re even eligible to bid, regardless of your liability coverage.
Bonding companies evaluate your business’s financial strength, credit history, work history, and management experience — often called the “three Cs”: character, capacity, and capital. Stronger financials and a solid track record of completed projects generally translate to higher bonding capacity and lower premiums.
Beyond contract bonds like performance and payment bonds, many businesses need license and permit bonds required by state or local licensing boards, or fidelity bonds that protect against employee theft or dishonesty. The specific bonds required depend heavily on your industry and the jurisdictions you operate in.
If a valid claim is paid out by the bonding company, they will seek reimbursement from you (and often from personal guarantors on the bond) for the full amount paid — bonds aren’t a substitute for handling your obligations, they’re a guarantee to the other party that backs them with your own indemnification.
Start by telling us about the project, the bid amount and your business. Bonding companies review your financials, credit, experience and work history, and may ask for financial statements and a work in progress schedule. If approved, the bid bond is issued so you can submit it with your bid. Call (720) 800-9495 or request a quote to get started.
Performance bond premiums are usually a percentage of the contract amount. The rate depends on the size of the contract, your credit, your financial strength and your experience with similar projects. A strong financial profile typically means a lower rate. We can review your situation and get quotes from surety markets.
Many public projects require both, and some private owners ask for them too. The contract documents will state what is required. They protect different parties: a performance bond protects the project owner if you do not finish the work, and a payment bond protects subcontractors and suppliers so they get paid.
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NEEDS TODAY: (720) 800-9495