Why Contract Service Providers Need Surety Bonds

An appliance repairman works on a product.
Surety bonds protect customers who purchase warranties.

Let Customers Know That You Are a Trusted Service Provider

You just bought a new TV. Yay! It’s got all the bells and whistles. Big screen, internet, 3D … you’re in heaven. But, hang on there … before you know it, something goes wrong. The TV no longer powers up, the screen starts doing funky stuff or a button falls off. You dig out the manufacturer’s warranty and hope that you are still covered.

When you spend a lot of money on a product, you want it to last. Many products, such as electronics, appliances or motor vehicles, come with a limited manufacturer warranty. Then if something goes wrong with the product during a certain amount of time, you can get it repaired or replaced at little or no cost. But how many times have you had issues with a product right after that warranty has expired?

Extended Service Plans

If you want to extend the time your product is protected, you often have the option to purchase an extended warranty, or extended service plan.

This is a warranty that you pay for up front and can include benefits that the manufacturer’s warranty doesn’t have. It can overlap the manufacturer’s warranty or kick into gear after the original warranty expires.

Protecting the Consumers

Since you pay for an extended warranty in advance, you don’t want Service Contract Providers to just take your money and run. You want to be sure they will be around when you need them, and will do the job they promised when you bought the warranty.

The government wants that, too. Federal and state regulations are in place to ensure that the warranty is honored as stated in the contract.

Many states, such as Florida, are taking an extra step to protect consumers and require that Service Contract Providers obtain a surety bond. If the Provider doesn’t honor their service agreement with a customer, the customer can make a claim on the bond.

“The Customer Is Always Right.” Right?

We’ve all heard that statement, but it’s not always true. A surety company that receives a claim against a Service Contract Provider will do their due diligence to investigate the issue and see if anyone is at fault. If the customer’s claim proves to be false, then the claim is dismissed. But if the claim is legitimate, the surety company will pay damages to the customer, up to the amount of the bond. Then the Service Contract Provider is responsible for reimbursing the surety.

How To Get A Surety Bond

If you are a Service Contract Provider who needs a Surety Bond, you must get it from a licensed agency like SuretyGroup.com.

SuretyGroup.com is licensed to sell surety bonds in all 50 states. Our Surety Bond Specialists can often give you same-day approval that makes the process quick and easy.

Have questions? SuretyGroup.com can help. Give us a call at 1‑844‑432‑6637 or email info@suretygroup.com and our Surety Bond Specialists can walk you through the bonding process.

SuretyGroup.com – Your Online Bond Provider.
Great Rates. Solid Advice. Quick Solutions.


Leave a Reply

Your email address will not be published.