If you are in the construction business in Massachusetts, there is a chance that you may be required to obtain a Massachusetts performance bond – or “surety bond” – for that particular job. A performance bond is issued by either an insurance company or a bank and it protects your investment if that something goes wrong, such as the contractor going out of business.
There are several common surety bonds in Massachusetts:
- Massachusetts Administrator Bond – ensures the estate settlement duties are appropriately handled according to the will and legal requirements of the jurisdiction. The cost of the Administrator Bond is based mainly on credit and some basic information.
- Massachusetts Business Service Bond – protects customers from theft committed by employees, and is commonly purchased to show professional credibility by companies engaged in activities such as appliance repair, elderly or child care, household or business cleaning, pest control, painting, and several others.
- Massachusetts Contract/Construction Bond – guarantees a contractor will obey the agreements of a contract or construction job. This bond ensures that the contractor will execute the work and pay subcontractors, laborers and material suppliers.
- Massachusetts Employee Theft/Dishonest Bond – protects employers from unethical acts demonstrated by employees. Common claims include forgery of documents, employee theft, embezzlement, or ruining of property.
- Massachusetts ERISA Bonds (link to ERISA bond content page on C&P website)
- Massachusetts Liquor Bonds –required by the Commonwealth of Massachusetts Alcoholic Beverages Control Commission; guarantees a business licensed to sell alcohol complies with all state regulations.
This is not intended to be a full description of coverage –these are only the more common performance bonds in Massachusetts. For more information contact an agent at Cochrane & Porter today at 781-943-1555 or firstname.lastname@example.org!