Although we cannot predict the future, at Kramer Insurance Center, our agents can help you prepare for it. Purchasing bonds are a great way to protect your business from future risks and we can help you with that! There are a wide variety of bonds out there and we understand that can get confusing for many individuals. How can you understand which type of bond you need? You can let us help you!
What are the different types of bonds?
- Performance Bonds are a type of surety bond. This is a bond issued by an insurance company that can guarantee the completion of a project by a contractor. No matter what might go wrong, with a performance bond, the end result should be a completed project.
- Surety Bonds are bonds that guarantee the debts of one party by another. Essentially, the surety organization assumes responsibility of the expenses incurred if the debtor defaults on the client who purchases the bond.
- Municipal Bonds are bonds that can be used to finance capital expenditures. Things that are considered capital expenditures are typically funds for the construction of highways, bridges or schools. These bonds are typically exempt from federal, state and local taxes.
Keep in mind that bonds can be classified depending on several factors, including:
- Whether or not they are secured or unsecured
- Tax status
- Maturity rating
- Financial reliability of lender
And those are not the only type of bonds out there! If you want to learn more about how you can feel more comfortable with the purchase of a bond, get in touch with Langhorne, Pennsylvania based Kramer Insurance Center today!