Tim
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Being bonded is like an insurance policy for the customer. The state dictates which professions need to be bonded, and it is very easy to find out by asking your state licensing bureau.
Contractors are a good example. There are lots of shady characters out there who would easily take advantage of some naive homeowners. For instance, they might collect a big down payment and disappear, or start the work and leave before it is finished. It they are bonded the person who was ripped off has recourse with the bonding company for damages.
Bonding companies do not bond shady characters (normally) because they would be exposed to possible claims. The premium they collect from the contractor might be $600.00 for a $25,000 bond, so if there is a claim they might have to put up the whole 25K.
The whole idea of bonds is protection for the consumer. |
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jim06744
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bonding can essentially be thought of as insurance against fraud or theft or stuff like that, on the part of your employees or yourself |
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Voice
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Also, you might want to look into incorporating your business. If the business in icorporated, and your sued, the people sueing can only sue the business...it doesn't leak over to you. If I remember my business management classes correctly, but the laws may have changed since then. |
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thomy8s
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Talk to your insurance agent. If you will be placing yourself or your employees in a situation where you will be be dealing with other peoples' personal property, bonding is a good idea. |
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Bobbie
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bonded means the company will be responsible for anything the employees do while they're working. |
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Anna Hennings
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Insured and bonded are almost synonamous. When you go to an insurance agency to get insured for any damage that you incure from your business, you ask to be bonded so that if you create any damage you're covered as well. |
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Charlie Bucket
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Bonded means that you have deposited a certain amount of money somewhere in case you get sued, or if you do not deliver on a contract, someone can go after your bond as recompense. |
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emmettgolf
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a bond is a form of insurance. A bond is usually not required unless you are a small contractor who does work on homes or commercial buildings. It depends on the type of business you are in. If your business activities could cause damage to a property or business, you should get a bond. If you are selling candy or clothes, you don't need one. Perfomance bonds are sometimes required when you bid on a large contract. They usually cost something like 1% of the contract amount. |
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catgina
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when you apply for your business license they will tell you if you need a bond. its just insurance for if you dont complete a job the people can file a claim to get money to finish what you didn't do .
this probly depends on what type of business you are in. |
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animal
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When a company is bonded it is insured or covered by anything or anyone who is hurt,property destroyed, it can replace the item or pay the hospital bill for the person. It let's the customer know that they are trustworthly.
Check whatever state directory you live at for the number to seek the application for bonding. |
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