Starting a new business can be a daunting task. There are so many things to consider prior to opening for business. One of the most important items any business owner needs to research is finding out what government licenses need to be obtained and what type of bond has to be filed with it. Obtaining the proper insurance coverage is equally important prior to start-up. In this article we will review what is means to be bonded, the benefits of doing so, what type of bonds your company needs, and what you need to know prior to purchasing a bond.
What Does it mean to be “bonded”?
The phrase “licensed and bonded” is one you might see on the side of a contractor’s truck, on a mortgage broker’s business card, or on an auto dealer’s billboard. Obviously, they are all using the phrase for a marketing advantage over their competitors to show they are safe to do business with. What does it mean for these companies to be bonded? It means that a bonding company (also known as a surety) is guaranteeing the performance of their business per the terms of the filed license. If the bonded business (the principal) fails to fulfil the bond guarantee, then the obligee (whoever is requiring the bond) can file a claim to recoup losses incurred.
The process of obtaining a bond:
The government requires a bond of the business. The business then obtains the bond from a surety company.
These bonded companies are not purchasing bonds simply for advertising purposes, they obtain them because they are required to by the government to legally operate. There are literally hundreds of different occupations that are required to post a surety bond to local, state, or Federal governments. It is extremely important to find out whether you need to post a bond to run your business. Operating without a bond when one is required always results in the government halting a businesses operations. Typically, the bonds are filed to obtain a license to operate. However, there are instances where the government does not require a business to be licensed, but does require a bond to be posted. There are simply too many business types to go over them all in this article, so feel free to ask about your business getting bonded on The Surety Bond Forums.
What type of bond do you need?
There are two main types of bond products that people refer to when referring to “getting bonded”. The first is a surety bond, which is the type we were referring to above. The second type is a fidelity bond, which is a completely different product than a surety bond. As we learned above, a surety bond involves three parties: the obligee (typically the government), the principal (the business in need of the bond), and the surety (the bonding company backing the bond). A fidelity bond is actually a type of insurance product, not a type of surety. With fidelity bonds, there are only two parties involved: the principal (the business obtaining the bond) and the carrier (the bonding company backing the bond). Since fidelity coverage is a type of insurance, the principal (you) are the beneficiary in the event of a claim. An example scenario would be a fidelity bond that insures your company from employee theft. If a an employee were found guilty of theft, the bond would pay out.
Now that we know there is more than one type of bond, we can answer which one you need. The answer is usually pretty simple. If there is someone requiring the bond of you, it is a surety bond, as there are then three parties. If no one is requiring the bond and you simply want to protect your own interests, it is a fidelity bond.
Benefits of getting bonded
Surety bonds and fidelity bonds are different products and therefore have different benefits (as well as different downsides).
Surety Bonds:
As we went over in the beginning of the article, business often list that they are bonded on marketing materials. What other benefits does a surety bond provide for your company? Not many, as the bond is required by the government to protect the public, not your company. Funds from a bond claim would be distributed to those effected by your company’s lack of compliance with government regulations. One might ask, how is a bond beneficial to my company then? You have to remember, you need to post the bond to operate. The alternative is to never open business or post a irrevocable letter of credit (ILOC). An ILOC typically costs 1% and will require 100% collateral, where a bond usually costs 1-3% and requires no collateral. When you look at the alternatives, it is clear that a bond is very beneficial to your company’s operations.
Fidelity Bonds:
Fidelity bonds are rather strait forward, they are insurance product that protects your business from loss. Unfortunately, a claim will only payout in the event that the individual accused of stealing is found guilty by a court of law. On the bright side, they are relatively inexpensive and can be used for advertising in the same way that a surety bond is. Typically lock smiths and janitorial services will advertised that they are “bonded and insured”. When stating this, they are referring to fidelity coverage.
What you should know before purchasing a surety bond
You will be held responsible for any claims!
A surety bond is not insurance, it is more of a form of credit. Keep in mind the bond is guaranteeing that your business performs as required. If you fail to do so, it could result in a bond claim. Since bonds are not insurance, the bonding company will ultimately hold you and your company responsible for repayment of any losses. They are extending surety credit, not insuring your company. The bonding company will require your company and all owners to sign an indemnity agreement to ensure the bonding company is held harmless against any losses. The agreement can not be modified and they will not bond you if you do not sign.
The process of a bond claim:
The government files a claim with the surety. The surety turns to the business for repayment of losses.
Shopping for bonds can be tricky
Bonding companies are usually hesitant to review applications that they have received from multiple agents. Some carriers will decline an applicant simply because they have received the submission from too many agents. Therefore, it is best to submit to only one agency that is appointed with a large variety of different markets to properly place you bond. You can submit to more than one agency, but it is a good idea to inform all agents that you have applied with others. Any agent worth a grain of salt will then ask what bonding companies your application has been sent to. It is imperative that the carriers are not repeatedly submitted to, otherwise you may shut yourself out from the lowest rates.
Thank you so much. This was just what I was looking for. Very Helpful
Comment by jamie — February 2, 2009 @ 10:36 pm
Glad to hear we could help! Feel free to come back at us with any questions.
Comment by Administrator — February 3, 2009 @ 4:12 pm
I am doing cleaning and organizing for people in my church part time. I have not set up an official busness, it has mostly been randum word of mouth, but someone asked me if I was bonded. Do you have to have a business lic to get bonded?
Comment by Debbie — March 9, 2009 @ 5:12 pm
Some businesses must file a license, along with a bond to local or state governments. That is something you will have to look into. However, I can tell you from experience that I have never heard of a government required janitorial bond.
What you may be looking for is a fidelity janitorial bond. It is a form of insurance rather than surety credit. Try doing a google search, there are numerous companies that will write them and relatively cheap to boot!
Comment by Administrator — March 10, 2009 @ 9:00 am
i am starting a lawnmowing business, but i am going to be the only worker for awhile. Am i required to be bonded? If so, which bond? Thanks!
Comment by Adam — March 15, 2009 @ 11:53 pm
Adam,
We get this question quite often from landscapers. More than likely you are not required to be bonded by law. However, you will need to check with your local government to ensure that holds true in your area.
You will also want to check that the state government has no bond requirement. We have a list of state required bonds for contractors at: http://www.jwsuretybonds.com/surety-bonds/commercial-bonds/contractor_license_bond.htm
If the government is not requiring it of you, then there is no bond to obtain.
I see that Oregon requires a bond of landscapers, but no other state does.
Comment by Administrator — March 16, 2009 @ 10:09 am
I am looking to start my own janitorial service for small business and offices. How much should I expect to pay for a fidelity bond?
Comment by Ken — March 18, 2009 @ 11:59 am
Ken,
Fidelity bonds are relatively cheap when compared to surety bonds, as it is a a true insurance product, rather than a form of credit like suretyship. The pricing is mainly based on two things…
1) The amount of coverage.
2) How many employees are covered.
Try google searching CNA Surety. They have online applications for janitorial fidelity coverage, which may even have the pricing listed on the application.
Good luck and let me know if you have any further questions!
Comment by Administrator — March 18, 2009 @ 1:09 pm
I am starting an estate business whereby I perform one or more of the following services: total clean out, sale on site, disposal/removal of household items, removing items to sell on online auctions. My question is should I be both bonded and insured? I work mainly through estate planners, bankers, attornies and families. Thank you.
Comment by Heidi — April 11, 2009 @ 8:57 am
I think I have now figured this out. Please advise if I am right. My wife has been a book keeper for many years, with a CPA and now with a small manufacturing company. Due to hard economic times she is contemplating starting a business assisting seniors with checkbook balancing and bill paying, I believe she would need a fidelity bond?… and possibly set up a LLC for our own protection ?
Is this correct?
Comment by JohnLeo & Linda — April 11, 2009 @ 4:02 pm
Heidi,
Since the bond is not being required by a 3rd party, there is no surety bond to obtain.
However, you could look into fidelity bonds, a form of insurance. Since it is insurance, you will need to decide whether or not you want to protect yourself or not…
Comment by Administrator — April 13, 2009 @ 1:55 pm
John,
You are correct in saying that a fidelity bond is the product that would be used, as there is no one requiring the bond of you (like suretyship).
However, since she is the one working on the books, she is the only one to be bonded. A fidelity bond will not pay out to you if she is both the theif and the beneficiary.
Comment by Administrator — April 13, 2009 @ 1:57 pm
Do you need a college degree to become bonded for doing bookkeeping/accounting work?
Comment by Tim — May 20, 2009 @ 1:19 pm
Tim,
No. Education is not considered much of a factor (if at all) as much as experience within a field.
Comment by Administrator — May 20, 2009 @ 3:45 pm
I have just started a construction business in indiana. I do framing, roofing, etc. do i need to be bonded?
Comment by david — May 27, 2009 @ 11:42 pm
David,
That depends, are you required to be licensed by the state or local government? If the answer is no, then there is likely no bond to obtain.
Comment by Administrator — May 28, 2009 @ 3:07 pm
HI I’M STARTING A HOMECARE BUSSINESS AND IM TRYING TO FIND OUT IF I’M GONNA NEED ANY BONDED INSURANCE?
Comment by yolanda — June 1, 2009 @ 9:01 pm
Yolanda,
Is the government requiring it of you?
Comment by Administrator — June 2, 2009 @ 9:50 am
I got my auto dealers license and would like to sell used cars, I was told by the California DMV that I need really goood credit, own my own realty property. I don’t have any of that, is their another way to get a surety bound.
Comment by Willie — July 1, 2009 @ 2:54 am
Willie,
The DMV is correct when it comes to standard surety markets. However, we have specialty markets that can get you approved in minutes.
You can apply online at: http://www.jwsuretybonds.com/surety-bonds/commercial-bonds/applications/apply.php
Comment by Administrator — July 1, 2009 @ 11:05 am
so, can someone tell me in the state of Texas,is the fidelity bond good if i only want to cover no more than 4 people for my janitorial svc
Comment by susan — July 16, 2009 @ 1:19 am
If an individual has been convcted of a crime(s) and has served time in federal prison, are they able to obtain a bond for thier business in WA or IL?
Comment by B Wood — August 9, 2009 @ 5:37 am
It depends what the bond is for. Is the government requiring the bond of you?
Comment by Michael Weisbrot — August 10, 2009 @ 2:43 pm
In Washington State, does a wife have to sign the bond if she is not part of the business?
Comment by Amy Skierka — August 19, 2009 @ 6:57 pm
Amy,
Spousal indemnification is required in all 50 states by just about every carrier in the country. You need to know that surety bonds are not insurance, but a form of credit. From the surety's perspective, they won't guarantee a company if the spouse isn't willing to as well.
Here is a great online video that might help to explain the process and why bonding companies feel that spousal indemnification is necessary.
Feel free to ask any follow-up questions. We are always happy to help!
Comment by Michael Weisbrot — August 19, 2009 @ 7:13 pm
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Comment by sandrar — September 10, 2009 @ 9:09 am
I AM STARTING A CLEANING BUISNESS AN I NEED TO BE BONDED AND I JUST WANT TO KNOW HOW TO GET ONE AND WHAT IS THE COST THE NAME OF THECLEANING BUINESS IS STARLIGHT CLEANING SERVICE LLC COULD YOU PLEASE GET BACK WITH ME AND LET ME KNOW MARGARET ELZA MARGE130@MSN.COM
Comment by MARGARET ELZA — November 2, 2009 @ 11:41 pm
Margaret,
Per the article above, you need a fidelity bond. Do a search on Google for it, as we cannot help if you don't need a surety bond.
Comment by Michael Weisbrot — November 3, 2009 @ 2:43 pm
I want to start a Deck and Fence sealing and staining company in Nebraska. I will have insurance, do I need to be bonded?
Comment by Jim — November 3, 2009 @ 4:48 pm
Michael, can you post the video again — I don't see it. Thanks.
Comment by Mike — November 3, 2009 @ 5:49 pm
Jim,
I don't see Nebraska on our contractor license bond list at: http://www.jwsuretybonds.com/surety-bonds/commerc…
However, you may have a local requirement to fulfill, or Nebraska may have created a requirement since we last updated that page.
In other words, best to do your homework with both local and state governments to ensure you are following the rules.
Comment by Michael Weisbrot — November 3, 2009 @ 6:40 pm
Mike,
Not sure what happened to the link. Anyhow, here it is: What Are Surety Bonds?
Comment by Michael Weisbrot — November 3, 2009 @ 6:41 pm
I'm guessing there is no bond requirement, but it is likely still a good idea to check with the state department that overseas your industry.
Comment by Michael Weisbrot — January 12, 2010 @ 4:24 pm
i want to start a moving company i will use a truck that can only hold 10,000 lbs do i need to be bonded and what kind would be best?
Comment by danny — January 12, 2010 @ 4:19 pm
i own hooper trucking i have my own authority but im wanting too add a brokage side too it i know i need a surity bond but my credit is around a 580 and i have back child suport plus a felony from 26 years ago am i waisting my time trying too get this done
Comment by artie hooper — January 30, 2010 @ 9:04 pm
I'm starting a sole proprietorship bookkeeping business. I've been told that getting bonded as a sole proprietorship was a 'waste of time'. Additionally I've been told that I absolutely need to be bonded which makes more sense to me. Do I or don't I? If I do what kind of a bond would be for me?
Comment by Bernadette S. — February 1, 2010 @ 5:56 pm
We have high risk programs for the BMC-84 freight broker bond. However, often times the high risk premiums are not as good of an option as the BMC-85 trust fund. You can rest assured that our agents will be able to refer you to some great companies that handle the BMC-85 should it be more cost effective for you.
Comment by Jw Surety Bonds — February 2, 2010 @ 3:17 pm
Bernadette,
Is the government requiring a bond of you? If not, you might want to consider a fidelity bond, more of insurance policy than a surety product.
Comment by Jw Surety Bonds — February 2, 2010 @ 3:18 pm
I am trying to open a real estate school in WV and have been told that I need to be bonded. After reading your description I am guessing that it would be a surety bond, but I am not sure. The WV Real Estate Commission is involved and that is government. Can you help me determine the type of bond I need?
Comment by Stacy L — February 13, 2010 @ 4:18 am
Stacy,
You likely need a commercial bond for a private school. We see them all of the time!
You can apply online at: http://www.jwsuretybonds.com/surety-bonds/commerc…
When it asks for a bond type, choose "Miscellaneous Bond (not listed)".
Comment by Michael Weisbrot — February 15, 2010 @ 2:11 pm
I buy and sell cars in california yet too legaly sell more than 6 a year I need to have a dealers license which will require a bond of 50,000. The problem I am looking at now is that I have very poor credit. Are their any high risk auto dealer bonds available? Also I have the possibility of a partner who already is a business owner with good credit, how bad will my poor credit reflect on the price of our bond if we go for our dealer license together.
Comment by Dan — February 17, 2010 @ 7:24 am
Dan,
There is good news and bad news. The good news is, there are several high risk programs you could be approved through. The bad news is they are substantially more expensive.
You can get a quick estimate on costs at: http://www.jwsuretybonds.com/estimate.php
Comment by Michael Weisbrot — February 17, 2010 @ 2:24 pm
My husband and I are trying to start an electric company in Oklahoma, What type of bonding do you recommend and will I need to be on this since we are married? What is the average cost of bonding?
Comment by Amber — February 21, 2010 @ 11:43 pm
Amber,
According to our Contractor license bond state requirement list, Oklahoma does not require a bond. However, you will want to check with the state to ensure they haven't created a requirement since our list was created.
Also, check with your local municipality, as they may require a license bond of you.
If you do need a bond, as his spouse, you will be required to personally indemnify.
Comment by Michael Weisbrot — February 22, 2010 @ 2:59 pm
do i need to be bonded to sell non-tangible items online for a merchant account
Comment by steve — February 23, 2010 @ 11:42 pm
do i need to be bonded for my merchant account to except oline coupons, and if so what type off
Comment by steve — February 23, 2010 @ 11:46 pm
Steve,
In order to properly answer your question I need you to clarify what type of business you are running.
Comment by Michael Weisbrot — February 24, 2010 @ 2:20 pm
I have a new busines.. Remodeling business, doing construction, carpentray etc.. How do I begin getting bonded & licensed for my company? What do you recommend?
Comment by Tracy — February 27, 2010 @ 4:08 am
My wife has formed an llc in Colorado to bid on a hospital RFP for interpretation services, the RFP asks if we are bonded. Would this be a surety or a fidelity bond?
Comment by Keith — March 1, 2010 @ 10:29 pm
I am expanding an auto body shop in Tennessee. I am attempting to become a preferred shop for insurance claims. Which type of bond do I need if any?
Comment by cottonlo — March 21, 2010 @ 3:04 am
Some states have bond requirements for mechanics, but most just for dealers. Do you plan on selling cars as well?
You will want to check our obligee bond requirement list at: motor vehicle bond requirements
Comment by Michael Weisbrot — March 22, 2010 @ 2:59 pm
John,
You would need to setup a "contract bond line" so you can obtain bid and performance bonds required for the government contracts. You can apply online at:http://www.jwsuretybonds.com/surety-bonds/contrac…
Comment by Michael Weisbrot — April 8, 2010 @ 1:36 pm
im looking for the same thing call me 5039339359 name is mike
Comment by michael jones — May 2, 2010 @ 7:11 pm
my probation officer is requiring the bond
Comment by michael — May 2, 2010 @ 7:13 pm
Hello! I am a talent management company in California and want to expand my business into Arizona, Texas, Chicago, Atlanta, Florida and New york. I want to become a full service model and talent agency. My credit is ruined due to a divorce. I was convicted of a felony over 10 years ago. Can I realistically obtain a surety bond or should I put my dreams to bed?
Comment by Raquel — May 14, 2010 @ 12:51 am
Im starting a carpet cleaning busines.do i need to be bonded to clean residential homes and not the big corporate business.
Comment by Antonio — July 9, 2010 @ 10:22 pm
i,m starting new security guard company do i need to bonded?
Comment by Said — July 26, 2010 @ 6:41 pm
Only if the government is requiring you to.
Comment by Michael Weisbrot — July 26, 2010 @ 6:55 pm
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I just came across your blog.
Comment by celebrity fuck you — August 24, 2010 @ 2:34 pm
i am also planing to open a cleaning service buisness did you start? how is buisness? what bond did you do? how much was it?
Comment by yonit — September 1, 2010 @ 6:22 pm
Hi, I am planning on opening up a personal assistant/ concierge small service business out of my home. I will be the only employee and the business is basically like helping senior and parents shop, do errands for them, clean their homes as well as small business offices, etc.As well as delivery items or gifts etc. The business would be located in Georgia and I wanted to know if I would need to bonded or licenses? I have seen other companies similar to mine in other states just saying bonded and insured. If I decided to hirer contractors (1099) to help me out would that automatically require anything of me?
Thanks
Comment by Chassity — September 11, 2010 @ 10:18 am
Hello Guys – I have heard that there are bonds designed for folks that have gotten in a little trouble and these types of bonds would be something your looking for…
Comment by Lil "Texas" — September 21, 2010 @ 2:28 pm
My husband and I own a trucking company and I am considering getting my brokers license. My credit is terrible, is it still possible to get bonded ?
Comment by Christina — October 16, 2010 @ 8:11 pm
my boss needs to get a bondto hire felony workers so she can profeit from it as well as the workers?
Comment by terri — October 16, 2010 @ 9:02 pm
Christina,
Yes it is still possible. However, what many bond agents won't tell you is that the bond is not always the best option. Our agents are always instructed to do what is best for the client, not our agency. We will be able to get you approved, but if there is a better option out there, we will recommend it.
You can start the process by applying for a freight broker bond at: http://www.jwsuretybonds.com/protools.htm
Comment by Michael Weisbrot — October 18, 2010 @ 1:34 pm
Terri,
I've never heard of such a thing. Is the government requiring the bond?
Comment by Michael Weisbrot — October 18, 2010 @ 1:35 pm
I need to get a $10,000.00 surety bond that is required by the state, how much would that cost?????
Comment by brad — November 21, 2010 @ 3:31 am
I live in Volusia county, Florida and I have just started a foreclousre clean out and cleaning business, so I just want to confirm that all I need is a janitorial bond? There are 5 of us.
Comment by Trauler — February 23, 2011 @ 4:50 am
Trauler,
That would be my guess. There really aren't any government bond requirements when it comes to janitorial work. The only bond requirements we see for that line of work are on a contract basis, not for a license.
Comment by Michael Weisbrot — February 23, 2011 @ 10:35 am
I am starting a new business, CLG Care ( social companion), non medical. Will I be required to be bonded and if so which kind ?
Comment by CLG — March 24, 2011 @ 3:41 pm
You need to contact the government department that regulates your business and ask to make certain.
If you are in need of a bond, you can get a free quote at: https://www.jwsuretybonds.com/protools.htm
Comment by Michael Weisbrot — March 24, 2011 @ 3:48 pm
Surety Bonds don't fund businesses. They guarantee them. You need to get a loan, not a bond.
Comment by Jw Surety Bonds — April 6, 2011 @ 1:23 pm
We are starting an incorporation bookkeeping business..Can you tell us what bond to we need.
Comment by Francois — May 4, 2011 @ 3:26 pm
Most likely there is no surety bond requirement, but it would likely be wise to look into fidelity coverage.
Comment by Jw Surety Bonds — May 5, 2011 @ 11:01 am
My husband and I are looking to start a small business in TX doing commercial cleaning along with maintenance, home/commercial renovations. If we do decide to hire employees in the future, there will be no more than 4 or 5. Is the fidelity bond the only type of bond we need?
Comment by Karen P — May 6, 2011 @ 10:58 am
Karen,
In all likelihood, yes. A surety bond is only needed if someone if requiring it of you. You may need a surety bond if you do larger service contracts.
Comment by Michael Weisbrot — May 9, 2011 @ 11:40 am
What type of bond may be
needed for a mobile auto mechanic in Arizona?
Comment by Shercasp — May 25, 2011 @ 2:22 pm
Take a quick peek at our list of Arizona surety bond requirements. It is updated quite frequently so it should be decently accurate. It appears that it will depend on whether or not you plan to sell cars as well.
Comment by Michael Weisbrot — May 26, 2011 @ 10:46 am
I am starting a handyman service. I have been told I need to be licinsed and bonded. What sort of bond will be required?
Comment by Bonnie — June 7, 2011 @ 1:57 pm
Bonnie,
Did the a government department tell you that you need to be licensed and bonded? If so, it is likely a contractor license bond, which you can apply online for an instant approval/quote. If not, I think you will benefit from re-reading the article.
Comment by Michael Weisbrot — June 8, 2011 @ 10:40 am
I was offered a job working for residents in assisted living place, the director requires me to get a bonds to protect the residents from any incidents that might happen, which kind of bonds do I need to get and does this kind of bonds requires me to have a credit check?
Comment by Adiol — August 9, 2011 @ 9:36 pm
Adiol,
Is the director requiring it of you or the government. There is a big difference, as bonding companies usually don't write bonds required by private companies or individuals for these purposes.
If it is indeed the director making this requirement, refer him or her to this blog and I will be happy to explain further.
If the government is setting the requirement, you can apply online for a free quote.
Comment by Michael Weisbrot — August 12, 2011 @ 10:49 am
I'm Starting a new General Contracting Company in Florida. I would like to be bonded to do state or City work. Can you help?
Comment by Sonny — September 21, 2011 @ 5:32 pm
What theen are commercial bonds?
Comment by M. Takawira — September 22, 2011 @ 4:57 am
Sonny,
It appears there are several Florida surety bond requirements that apply to contractors. I would first check with the state to see if your business falls under any of the requirements.
I'm assuming you want to do public work and need bid/performance bonds to obtain the jobs. For this you will want to apply for a contract bond line. Being that it is a new business you will likely be limited to $250K, unless you have a fair amount of capital in the company already. If you have bad credit, you won't qaulify for contract bonds period, only the commercial bond requirements from the state (e.g. Contractor License Bond).
Comment by Michael Weisbrot — September 22, 2011 @ 9:55 am
Commercial bonds are a category of surety bonds that includes license & permit, misc., and court bonds.
Comment by Michael Weisbrot — September 22, 2011 @ 9:57 am
Am beginning a partnership for rock business, building rock houses walls etc. Where do I find out about this Bonding and set up, Cost, coverage. I will begin working in NC and eventually after growth move into other states when we incorporate. Thank you in advance for any assistance You may be able to offer.
Comment by James A. Casper — September 22, 2011 @ 11:49 pm
James,
Are you doing public work?
Comment by Michael Weisbrot — September 23, 2011 @ 10:25 am
Do i have to be bonded to clean houses and apartment? I am located in Garland, TX.
Comment by MARY — October 23, 2011 @ 9:17 pm
Mary,
Looking at our list of Texas state surety bond requirements it doesn't appear you are required to post a surety bond. However, you could obtain a fidelity bond, a form of insurance from your P&C agent. Many janitorial services do so.
Comment by Michael Weisbrot — October 24, 2011 @ 10:48 am
Looking to start a roofing business from home until it is up and running then rent office space located in Garland,Tx is it required by law to be bonded and what type?
Comment by Donna — October 29, 2011 @ 6:49 pm
Donna,
There are several surety bond requirements for contractors in Texas. Take a look at that list and see if any apply to your line of work. You may have to contact the state department to see whether or not it is required of you. If it isn't, you do NOT want to purchase a bond, as it would be useless.
Comment by Michael Weisbrot — October 31, 2011 @ 10:06 am
What type of bond do I need to get if I am opening a moving company
Comment by sheila — November 2, 2011 @ 9:27 am
I will be running trucks that carry 10,000 lbs and also will have a facility with storage…I just need to know what type of bond is needed
Comment by sheila — November 2, 2011 @ 9:29 am
Sheila,
You likely won't need a bond. Tell me where the business is located and we can help you do some research.
Comment by Jw Surety Bonds — November 2, 2011 @ 9:30 am
we have a real estatement management company with $8m in single family properties, we raised $2.5m to make this happen and we are at a point where we want to get these people paid back, we have $30k/month revenues, we want to raise $5m and have a bond backing this up so that we can go to a bank or private group and have a so called backup or credit partner to ensure safety of these funds, how do you recommend going about doing
Comment by Keith — November 13, 2011 @ 11:44 am
Sheila,
Check with FMCSA to see if you need to post a BMC-84 freight broker surety bond.
If you do, you can get approved and pay online within minutes on our website.
Comment by Michael Weisbrot — November 14, 2011 @ 10:46 am
Keith,
The surety industry as a whole has stopped writing the guarnateees that you looking for. Unfortunately, this is a scenario that is "unbondable" in today's market.
Comment by Michael Weisbrot — November 14, 2011 @ 10:46 am
I am starting my own house cleaning business. I want to get bonded. Is this required for this kind of business, if so how much does it cost and what kind of bonding do I need.
Comment by M J — November 18, 2011 @ 12:20 am
You will want to look into a janitorial fidelity policy, not a surety bond. Try http://www.cnasurety.com
Comment by Jw Surety Bonds — November 18, 2011 @ 10:17 am
Hi,
My husband and I are thinking of starting a business that is a cleaning service as well as flooring installation servise in the state of Alaska, what kind of bond would we need to protect us and our clients and how much of a bond?
Comment by Emily — November 25, 2011 @ 2:47 am
Emily,
There is no surety bond requirement for janitorial services in Alaska.
You could obtain fidelity coverage, which should cover what you are looking to do. Try <a href="http://www.cnasurety.com” target=”_blank”>www.cnasurety.com for a janitorial fidelity policy.
Comment by Michael Weisbrot — November 28, 2011 @ 11:55 am
A friend and I are starting a new business in an untapped market of the "third party delivery" industry. ALthough the City of Chicago cannot identify a license and American Family Insurance may have to underwrite a special policy, we have been advised to be bonded. The delivery service involves privately owned vehicles. I am an ex-offender with multiple convictions. As a partner, would a bond be available?
Comment by David — December 1, 2011 @ 1:08 am
David,
Since the state or local governments are not requiring the bond, you cannot obtain a surety bond, as they are 3 party agreements. You could look into fidelity bonding, but the application will likely have questions regarding prior convictions, which may disqualify you. Check with http://www.cnasurety.com. They write fidelity direct to the public for cheap.
Comment by Michael Weisbrot — December 1, 2011 @ 10:28 am
Last conviction occured in 2004 for attempt armed robbery. I understand there is a greater potential to be disqualified, in which case I could always remain a "compensated consultant"…but I was looking into doing the right thing for the right reason, and would like to know…other than the potential of CNA, do "partners" need to be bonded if they do not yet have employees, and, if so, who would have the highest potential to consider felons?
Comment by David — December 1, 2011 @ 1:40 pm
David
A fidelity policy is insurance for you to protect from employee theft. You don't need to get one at all if you don't want.
Comment by Michael Weisbrot — December 1, 2011 @ 2:15 pm
Thank you so much for your assistance.
Comment by David — December 3, 2011 @ 1:21 pm
No problem. Best of luck!
Comment by Michael Weisbrot — December 5, 2011 @ 10:58 am
I need to know where and how Ican get a bond for a cleaning and packing company
Comment by Pat Williams — December 17, 2011 @ 10:25 am
Pat,
Your best bet is to go to <a href="http://www.cnasurety.com” target=”_blank”>www.cnasurety.com for a janitorial services bond. They provide them direct to the public and at low prices.
Comment by Michael Weisbrot — December 19, 2011 @ 11:29 am
I am trying to start our own cleaning buisness because we are felons and we are having alot of trouble trying to get hired at any other job. 2 years and counting! Do we have to be bonded legally? How much if so? We live in Florida. Please help, every thing I google won’t give me a sraight answer. Thankes and God bless…
Comment by Cristy kari — January 18, 2012 @ 2:19 am
There likely is no bond requirement. A fidelity bond policy would provide insurance against employee theft. However, you likely won't qualify for approval due to the felony. You can try to see if they will write it for you at http://www.cnasurety.com
Comment by Michael Weisbrot — January 18, 2012 @ 3:51 pm
I live in Alabama. I want to start a private sitting service for the elderly, home servicies, and in the hospitals what kind of bonding will I need. Please email me at xloonbc@aol.com.
Comment by Caroline — January 31, 2012 @ 10:03 am
Caroline,
The Alabama surety bond requirements do not list such a bond to be posted.
You'll want to check with a P&C insurance agent to see what coverage you need, but no bond can be posted without another party requiring it.
Comment by Michael Weisbrot — January 31, 2012 @ 10:58 am
[...] terms of its license on file. If the bonded business, known as the principal, cannot do so, then the obligee – the entity requiring the bond – can file a claim to recoup losses incurred. As surety providers (the agencies that issues the [...]
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