New Jersey Surety Bond Types
People like to feel protected when entering into business contracts with companies. Since the nature of surety bonds is to protect people from fraudulent and unethical businesses, bonded companies reassure people that they’re doing business with a reputable company. One of the most important industries people like to feel protected in is the insurance industry. The New Jersey state government knows that people expect their insurance claims to be taken care of in an honest and ethical manner, so New Jersey’s Department of Banking and Insurance requires public adjusters to secure a public adjuster bond before they are issued a business license to do business in the state.
In this example, the adjustor acts as the principal who promises to fulfill certain obligations. If at some point during the bond’s lifetime the adjuster acts maliciously, then every person damaged can file a claim on the bond and seek retribution. If this happens the adjustor could have to pay the entire face value of the bond. Since individuals and business owners like to avoid fees and bad reputations, the bond entices them to make ethical and appropriate decisions.
Surety Bond Definitions in New Jersey
There are many different types of businesses in New Jersey that are also required to secure a surety bond. Check your local and state rules and regulations regarding bonding in your area to see what kind you may need to pursue. If you find that your business doesn’t have to be bonded, you still might want to consider it as an extra protective measure. It’s good to be bonded if your business is one that deals directly with people because your customers will feel more confident about doing business with a bonded individual or company.
If you’re ready to get a bond, you can apply for one quickly and easily online in a matter of minutes. If you want to get the lowest rate possible make sure you provide as much financial and credit information that you can. You could have a quote back in only a few days. If you need help you can easily find a helpful surety bond specialist who will work to get the bond that’s best for you.