On the surface, a surety bond sounds like it protects you from many of the same issues as business insurance, especially when the policy is built for contractors. There are key differences between them though, and the best risk management plan is almost never just one or the other. It’s important to remember that, and a close comparison of the surety bond vs insurance policy protections like the one at Moody Insurance Worldwide can really help you navigate your options. The short version is that the bond will cover you if anyone experiences injury or loss due to a violation of the state’s laws and regulations governing contractor behavior, up to its value. By contrast, your insurance is typically there to protect you from liability outside that narrow category, and also to protect your operation and equipment, including any supplies you have on-site.
Finding the Right Insurance
If you’re a contractor looking for insurance that is built around your operation’s needs, size, and current projects, it helps to work with someone who also provides the surety bonds you’ll need whenever you’re taking on a project. The right insurer will be able to look at your bond coverage, including any additional payment or bid bonds you need, and build your liability and equipment insurance to cover any foreseeable risks that you can’t count on the bond to manage. That kind of help is priceless because it keeps you from over or under-insuring your operation.