I am starting my own business, and some people have told me that I just need to be licensed and insured, while other people tell me that I need to be licensed and insured AND bonded. What exactly does bonded mean?? HELP!!
2007-01-30 04:26:29 · 9 answers · asked by jahnursing 1 in Business & Finance ➔ Small Business
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.
2007-01-30 04:43:28 · answer #1 · answered by Tim 2 · 4⤊ 1⤋
What Does Bonded Mean
2016-09-30 03:33:05 · answer #2 · answered by aharon 4 · 0⤊ 0⤋
For the best answers, search on this site https://shorturl.im/xbqy0
Buying a bond means you made a loan to the company. Bonds are debt. There are different kinds of bonds. Some pay a fixed rate of interest, some pay a floating rate. Some bonds dont pay interest. They're bought at less than than the face value and pay the full face value amount at maturity, Stock is equity. It means you own a part of the company.
2016-03-26 21:52:37 · answer #3 · answered by Anonymous · 0⤊ 0⤋
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.
2007-01-30 04:37:38 · answer #4 · answered by animal 2 · 0⤊ 1⤋
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.
2007-01-30 04:33:39 · answer #5 · answered by thomy8s 4 · 0⤊ 0⤋
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.
2007-01-30 04:36:57 · answer #6 · answered by Anna Hennings 5 · 0⤊ 1⤋
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.
2007-01-30 18:09:54 · answer #7 · answered by Anonymous · 1⤊ 3⤋
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.
2007-01-30 04:32:25 · answer #8 · answered by Anonymous · 1⤊ 2⤋
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.
2007-01-30 04:49:57 · answer #9 · answered by catgina 2 · 0⤊ 1⤋
bonded means the company will be responsible for anything the employees do while they're working.
2007-01-30 04:32:39 · answer #10 · answered by Bobbie 4 · 0⤊ 1⤋