2007-07-03 03:48:45 · 6 answers · asked by vinubaba 1 in Home & Garden ➔ Maintenance & Repairs
There are two (2) ways that the term "bonded" can be used by a contractor.
The first and proper usage is when the contractor is licensed. In order to have an active license, most states require a bond to be posted to the state. This bond is there for any claims made against the contractor's license. The amount of the bond is the total available to cover any and all claims, so there is no guarantee of receiving a full reimbursement.
The second way it is used is when the contractor is not licensed and they carry a dishonesty bond. This bond only covers against theft of property and most only pay out after an arrest and conviction.
2007-07-06 09:17:44 · answer #1 · answered by suretyguy 3 · 0⤊ 0⤋
It means the contractor has a bond company backing him. If the contractor does not finish the job, the bond company will be liable for finishing the job, often times meaning it will have to hire another contractor to finish.
2007-07-03 11:32:39 · answer #2 · answered by Tom 1 · 1⤊ 0⤋
An example IE: My cousin put in a carpet in a big church. He also did some plumbing, he inadvertently knocked off some of the insulation on the pipe.
That night, the pipes froze, it was winter, and broke, it flooded the church and ruined the carpet.
His insurance wouldn't pay, they said it was negligence so, the church sued him, they took it to court. His bond saved him, they paid for the court fees, the carpet and the attorney.
This is just an example, everyone has a story similar I'm sure.
It did happen to him though, in Minneapolis, Mn.
2007-07-03 11:08:02 · answer #3 · answered by cowboydoc 7 · 0⤊ 0⤋
It is a type of insurance. Besides the obvious coverage of damages, it also covers theft by an emplyee of the company. To get a bond, the employees usually need a background check.
2007-07-03 11:30:33 · answer #4 · answered by sensible_man 7 · 0⤊ 0⤋
It is like insurance. It means they have a company that is financially backing them. If they default on their contract and the work doesn't get finished, you are entitled to go after their bond. This way you can receive money that you may have lost or that it may cost you to fix the project.
2007-07-03 10:55:25 · answer #5 · answered by Bucky 2 · 0⤊ 1⤋
Means, like a contract!!!!!!!!!!!!!
2007-07-03 10:56:29 · answer #6 · answered by Juliu C 6 · 0⤊ 2⤋