Question

Topic: Advertising/PR

Which Surety Bond?

Posted by web765 on 10/1/2012 at 12:59 PM ET 25 Points
We are in the process of starting a creative agency - develop/design internet ads. What type of surety bonds are required, or are they actually asked for before signing a contract? Surfing the net, there is a plethora of bonds out there! Not sure which one is relavent to our industry.
Also, do advertising companies ask for proof of professional liability insurance (Errors & Omissions) as well before signing a contract?
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RESPONSES

  • Posted on 10/1/2012 at 6:44 PM Moderator
    Not aware of any requirement to have a bond for this type of work -- at least in the United States.

    *** I am not a lawyer, and this should not be construed as legal advice. ***
  • Posted on 10/8/2012 at 5:08 PM Accepted
    Hello, my name is Danielle Rodabaugh, and I'm the director of educational outreach at SuretyBonds.com

    First of all, if you need a surety bond, somebody will tell you. Many government agencies require surety bonds of certain types of professionals before they can get their business license. These are likely the thousands of bond types you saw online.

    When it comes to jobs that involve contracts, sometimes a project owner will require a type of surety bond called a "contract bond" that's used specifically for a single project at hand. These are sometimes used in the tech industry, but, once again, they're only purchased if a certain party has told a business or individual that they must have a surety bond before beginning work on the project. Really it depends on the project owner and how they choose to protect their investments.

    So, you won't purchase a surety bond just because you think you should have one.

    If you have any other questions about bonding or if you need further clarification on your specific situation, you can speak to a surety expert directly at 1 (800) 308-4358 between 8 AM and 7 PM CST Monday through Friday.

    Good luck!
  • Posted by web765 on 10/8/2012 at 10:07 PM Author
    Thank you for the clarification. I wont get a bond unless we are asked for one.
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