Although the pandemic may be coming to an end, it has changed many habits and ways of working in various fields. As a result of the lockdown and the rise of remote work, electronic signatures have become an essential work tool during this period. In an effort to find effective ways of doing business despite the restrictions, many businesses have embraced this approach, which has a number of advantages.
When it comes to surety bonds (also known as licence securities) , many construction purchasers now require contractors to provide bonds in electronic form. Since bonds are considered official documents, they must be signed, sealed and delivered in original copy.
This process benefits both the contractor (the obligee) and the broker (the surety). But what added value does an electronic bond provide compared to a paper bond?
- Saves time and money – It takes much less time to produce and deliver documents.
- Eco-friendly — Since the document is fully digital, there’s no need to print it, which saves paper.
- Secure – The content of the bond is secure and can’t be altered. According to Defence Construction Canada, “an E-bond is an electronic file with an embedded digital certificate, creating a secure electronic document with a uniquely identifiable fingerprint.”
We know full well that business is booming and time is money. Between the tendering process and bid documents that must be error-free, you have a lot on your plate. With electronic bonds and signatures, the documents are issued, signed, sealed and delivered instantly. Not only does this save you time, it also helps reduce any last-minute stress.
All of this leads us to believe that the era of paper bonds is coming to an end. Yes, it’s true: many construction purchasers will likely switch to this new bond and electronic signature technology in the very near future.
Will you be part of the movement?
If you have any questions about this topic, our damage insurance brokers will be happy to advise you. Contact us!