Bonding

Sometimes confused with insurance, bonding helps ensure that thejob you’ve been hired to do is performed and that the customer isprotected against losses from theft or damage done by youremployees. The most common businesses that bond employees aregeneral contractors, temporary personnel agencies, janitorialcompanies and companies with government contracts.

Although you still have to pay on 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.