Contractor Stalling On A Fidelity Bond?

I just had a nice conversation on the phone with a lady who was in a hurry to get a quote on a fidelity bond. It turned out that one of her company’s subcontractors had failed to acquire a required bond by their deadline—today—and she had been assigned to expedite their foot-dragging.

I had two comments to offer.

First, nobody is going to quote a fidelity bond in a day. Why not? A fidelity bond is a guarantee that the bonded party will not get away with cheating their client. Naturally, the issuer of the bond will want to do a little checking around to make sure that the applicant hasn’t cheated anybody in the past. This takes time… typically as much as a week or two.

Secondly, and I think far more important, is this question: Why is this contractor dragging his feet?

It may simply be a matter of expense… but it’s also possible that your contractor may have a skeleton or two in his closet. A fidelity bond issuer will typically be reluctant to issue a bond to a firm with a previous fidelity claim, and with good reason.

The bottom line: if your contractor is reluctant to obtain a fidelity bond, make a few phone calls and check a few references. An hour’s investment may save you a pile of grief down the road.

You can shop for Fidelity Bonds online at e-Insure Services!

About EINSURANCE

EINSURANCE is a one stop shop for insurance quotes comparison. Our writers, researchers, and industry experts all work together to inform consumers about online insurance marketplace. Whether you’re buying your first car insurance policy or finding health insurance for your families, EINSURANCE always provides latest relevant information to your choices.