2007-01-16 11:36:35 · 2 answers · asked by Alex S 1 in Business & Finance ➔ Other - Business & Finance
A bond is a form of insurance, that you or a company will get. It means that you are indemnified up to a certain amount of money, in case of accident or theft, which is determined to be your,or the company's fault.
2007-01-16 11:42:33 · answer #1 · answered by Beau R 7 · 0⤊ 0⤋
Bonding is usually refers to a type of surety guarantee that a specific project, service or act will be financially covered if performance is not complete or satisfactory. Where as insurance cover a specific amount of financial coverage for risk to a tangible item, such as boat, car, etc.
You pay an annual fee to a bonding company. A bond is a amount of money, put up by a bonding company, that gurantees that you are of good character and not a criminal. The bonding company will do a VERY deep background check on you, to establish that you are worthy of being "Bonded".
2007-01-17 07:11:15 · answer #2 · answered by stiletto 4 · 0⤊ 0⤋