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Bid Bond & Bid Bond Insurance

A bid bond is a financial promise that a bid for a project or contract has been submitted in good faith and that you (the potential contractor) intend to enter into the contract at the price you bid. It’s often used in the construction industry and other project and contract-based industries.

You can get a bid bond for construction or other industries through Rogers Insurance. Our experienced bid bond insurance brokers can help you secure bid surety insurance at a competitive price. As a leading, independent insurance brokerage, we have access to a large number of markets as well as industry expertise to provide you with the best coverage. We believe in a hands-on, human-first approach to insurance and you’ll notice the difference in our customer service.

Request a bid bond quote online, by phone, or at one of our offices. Or, read on below to learn more about bid surety bonds and bid bond insurance.

Who needs a bid bond?

Bid bonds are most often found in the construction industry but can be found in any industry where projects are won through a bidding process by contractors.

If you plan to submit a bid for a public contract, you will likely need to purchase a bid bond. Some private clients also require them. It can also simply help make your company look like a more serious bidder for a project as it is a guarantee that you have the qualifications and finances to fulfill the contract and complete the project.

Bid Bonds for Construction: What does a bid surety bond cover?

Bid bonds are most often found in the construction or other industries that commonly bid on projects and contracts. They help prove to your potential client that the bid you submitted was in good faith and that you will enter the contract and complete the work at the price you bid.

Bid bonds help prevent potential contractors from submitting a low bid just to win a contract and then changing the price or amount or type of work the contractor will perform. If the contractor fails to honour the terms of their bid and the potential client needs to find another contractor, the bid bond will compensate the potential client for the cost difference between the initial bid and the next-lowest bid.

A bid bond protects the potential client rather than the contractor. So why would a contractor purchase bid surety insurance? Many potential clients require bid bonds in order to protect themselves. It’s also a great way to demonstrate that you’re a serious bidder on a project and intends to do the work as agreed.

How much do bid bonds cost?

The cost of bid surety bonds depends on a few factors:

  • The value of the bid for the project
  • Your financial health and history
  • The potential client
  • Where the project will take place and when

Bid bonds are either priced as a percentage of their overall value or as a flat fee

How to Get a Bid Bond

Purchasing a bid bond or bid surety insurance is similar to other types of insurance. You’ll need to work with a qualified bid bond broker and submit a completed application. This is a long application and requires a lot of information, including details about the potential project and client, the proposed contract, and your own business.

At Rogers Insurance, our bid bond brokers are familiar with the process and can help you be successful in your application. We also work with a number of markets, meaning we can deliver competitive bid surety insurance quotes.

Working with Rogers Insurance’s Bid Bond Brokers

Since 1977, Rogers Insurance has been a trusted insurance broker. Because we’re independent, we don’t work for an insurance company – we work for you. In fact, we have access to a large number of markets, which increases the competition and choice for your business.

We believe in a hands-on, human-first approach to insurance that is evident in our customer service. Our professional bid bond insurance brokers have the expertise and experience to make the bid bond application process more straightforward.