Elevator Contractor Surety Bonds
Many states require surety bonds before construction contracting work can begin, and the elevator industry is no exception. A contractor surety bond is an important investment because clients need to be protected from dishonest contractors or vendors. For elevator contractors, having this contract will give your customers peace of mind that the work you do will get completed.
What is a Contractor Surety Bond?
A surety bond is an agreement where a contractor pays to have a surety bond provider guarantee your contract will be completed for your customers. Essentially, you’re being held accountable so that the work that needs to be done will get done. If the work isn’t completed, the person who is doing the work could have to cover financial losses from the project or possibly face legal ramifications.
Surety bonds have three parties that are involved in making the agreement.
Principal
The contractor or person who oversees the work that is set out to be completed.
Client
The business or customer who needs the work done for them.
Surety
This is the company that issues the surety bond that will guarantee the work gets done.
Surety bonds are often used for government contracts, particularly in the construction space, but they are widely used in many different industries, such as the elevator industry.
Why Do Elevator Contractors Need Surety Bonds?
There are several reasons why surety bonds are needed for elevator contractors.
Bad Contractors
Surety bonds for general contractors have become most common because there are a lot of contractors that are not reliable. By having surety bonds, you are showing potential clients that you will do good work and will be held accountable.
Business Growth
By holding a surety bond, you have the opportunity to win bigger contracts from other contractors who may not have this bond. Winning these different contracts can help grow your business and win other clients you may not have had access to previously.
Potential New Customers
There are customers who will want to work with a contractor who has a surety bond because it offers them a guarantee that the work they originally signed up for will be completed. If not, they have a way to get financial reparations.
Additional Assurance
While surety bonds are not insurance policies and do not act in the same way, it provides supplementary assurance that the contract is going to be completed.
Benefits to National Elevator’s Surety Bonds
By partnering with National Elevator for a surety bond, you are getting the best in the elevator space. If you’re an elevator contractor or business, our bonds come with:
Experience
With over 40 years of experience in the elevator industry, we have seen it all. You’ll be getting the most dedicated support, specifically focused on elevator contractors.
Quality Service
Our representatives are made up of elevator industry experts who know the ins and outs of surety bonds. They’ll make sure that you have exactly what you need to protect your contractors.
Competitive Rates
Our rates, coupled with our industry expertise, make us an incredible value. Since there are state requirements for surety bonds, we can offer competitive quotes depending on your location.
Get started with National Elevator
Don’t start your next project with an elevator surety bond. Contact us today to learn about how we can protect your business today.
When clicking on any of the Legal links, you’ll be redirected to Specialty Program Group, LLC’s website which is the holding company of National Elevator Insurance Solutions.