The Facts About Bonding
We'll help you figure out if your company should be bonded.
Sometimes confused with insurance, bonding is a guarantee ofperformance required for any business, either by law or by consumerdemand. The most common businesses that bond employees are generalcontractors, temporary personnel agencies, janitorial companies andcompanies with government contracts. Bonding helps ensure that thejob is performed and that the customer is protected against lossesfrom theft or damage done by your employees.
Although you still have to pay claims if your employees arebonded, bonding has the side benefit of making your business moredesirable to customers. They know that if they suffer a loss as theresult of your work, they can recover the damages from the bondingcompany. The difference between a bond and insurance is that abonding company ensures your payment by requiring security orcollateral if a claim is made against you.
Excerpted from Start Your Own Business: The Only Start-Up GuideYou'll Ever Need
