If you are a business owner, you should consider having bond insurance because it guarantees customer payments if you, as a business owner, fail to meet the conditions stated in the contract. If you are interested in bond insurance, here are several important things you should know about it:

What are the benefits of bond insurance?

One of the main benefits of bond insurance is the lower cost of capital. Also, bond insurance boosts legitimacy if you are a small business owner and work for others.

How does bond insurance work?

It is an essential financial tool that provides a guarantee to a bondholder, according to which bondholders will receive interest and principal payments even if an issuer defaults.

What are the types of bond insurance?

There are two types of bond insurance: corporate bond insurance and municipal bond insurance. Corporate bond insurance is for corporations, while municipal bond insurance is used for general obligation bonds issued by local and state governments.

Are there any risks and disadvantages of bond insurance?

Yes, it has certain risks and drawbacks. For example, this insurance can increase the insurer’s cost of borrowing. Also, the major drawback of bond insurance is its cost. It can be quite expensive and affect the overall return on the investment.

Bond insurance is one of the most crucial types of coverage any business owner should consider to protect their company and assets. If you operate your business in Scranton, PA, or any other town in Pennsylvania, Bartal Insurance is the company that can help you with it. At Bartal Insurance, we will answer your questions and help you find a policy that will benefit you most.