I know about the errors and omissions insurance but this is the only thing I don't know about. Thanks!
2007-10-29 12:50:25 · 2 answers · asked by Prytanic_Kitra 3 in Politics & Government ➔ Law & Ethics
Bonding is basically another form of insurance.
Once a person is bonded -- by paying a fee to a company that issues the bond -- that company will guarantee the full amount of the bond, similar to an insurance company paying out on a claim.
The difference is that an insurance company will usually defend you against a claim -- and pay out only if you likely to lose (or actually do lose) the court case. A bonding company pays out automatically -- then charges you for the amount they paid.
2007-10-29 13:20:57 · answer #1 · answered by coragryph 7 · 0⤊ 0⤋
Here is a decent definition of a bond (definition #1): http://www.nolo.com/definition.cfm/Term/B6F682F8-32BD-48FC-8C6B4C89751F0B53/alpha/B/
Like the first answerer said, it's somewhat like insurance. But it's more a guarantee that you will perform the task you promise.
2007-10-29 15:48:57 · answer #2 · answered by Wyoming Rider 6 · 0⤊ 0⤋