Although being bonded is primarily protection for the customer, it can also provide your business with financial stability in the case of a dissatisfied customer. In the unfortunate event a customer makes a claim against your business, the compensation needed to settle the claim would come from the bond and won't impact your immediate operations. Being bonded provides a layer of trust between your business and your customers because you are giving them assurances to the quality of your work while providing a way for them to be made financially whole if something goes wrong.
When your business is bonded, it can send a message to prospective customers that you are professional, credible, and ethical. If you're unsure whether you need or ought to be bonded, you can consult an attorney, a surety or insurance company, or another qualified bond specialist who can advise you on your individual situation. Actively scan device characteristics for identification. Use precise geolocation data. Select personalised content.
Create a personalised content profile. Measure ad performance. Select basic ads. Create a personalised ads profile. Contractors are often required to provide a bid bond in order to be considered for work by public agencies or private entities with which they have never done business before. A bid bond is a monetary guarantee that the contractor will complete the work on time and to an agreed-upon standard. The contract between a general construction company and the owner of a building or facility specifies that if the contractor fails to fulfill their obligations, they must pay back all costs associated with replacing them with another bidder.
This may not seem like a big deal until there are thousands of dollars worth of damages left behind by an irresponsible contractor. Skip to content Who needs a bid bond? Who is a bid bond for? Who is protected in a bid bond? What is a bid bond for? Who benefits from a bid bond? Ken holds a J. Jose Rivera. Law Library Disclaimer. Can't find your category? Click here. Choose a Legal Category: Family Law. Real Estate and Property Law. Criminal Law. Personal Injury.
Defective Products. Intellectual Property. Business and Commercial Law. That verification also protects you from scammers, Leigh says, helping "you select out the people who are legitimate.
You also need to be sure that the person you hire to do work for you isn't considered your employee under federal law. If they are, it could open up a whole array of tax issues. It also means you may need to be providing workers compensation insurance, Leigh says.
One way to avoid those kinds of problems is to hire someone employed by an agency or be sure that the individual you hire is licensed, bonded and insured.
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I am married. I own my home. What if you are in the market for a full-time household employee? Bonding is a way for you to recover any money, goods or services that are lost. While you deal with a bonded company, you may need to check if their employees are properly insured.
When hiring a household help, you can use a firm to offer the service. And make sure to verify that their employees are insured and bonded.
If you employ a house help to work in your home every day, you should consider buying workers compensation insurance. So, does my housekeeper need to be licensed, bonded and insured? Different workers, different insurance solutions Consider an umbrella policy Final thoughts on why household help should be bonded and insured. See all articles.
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