The term “licensed & bonded” is frequently used for marketing purposes in an attempt to make a company’s potential clients feel safe doing business with them. In fact, the phrase itself is all your average person knows about the surety bond industry. In this article, we will learn what it means to be licensed & bonded. More importantly, we will learn how to become licensed and bonded.
What does it mean to be “licensed & bonded”?
Most people are aware what it means to be licensed. However, we should reiterate the purpose of a license. A license means that you have learned rules, regulations, and practices that the governing body requires you to be familiar with. Furthermore, it means that the licensee is capable of doing the work at hand. The license ensures you do the right thing, you passed the test and therefore you understand the difference between right and wrong and are held accountable for it. Not following the rules could result in loss of the license and possibly the ability to work in your particular industry in a specific area, a state, or even the entire country.
If a license does all of the above, you might ask yourself, why is there a need to be bonded? The license assures a client that the licensee knows the rules, but a bond guarantees that they will follow them. That’s right, in the event that the licensee breaks the rules of the said prevailing governing body, a claim can be filed against the bond to recoup losses for those negatively effected.
How do I become “licensed & bonded”?
You will have to do some legwork to find out who regulates the license you are looking to obtain. You will want to ask the licensing department what their requirements for obtain a license are to ensure you can meet all of their standards (Also see: How To Become Bonded). Some common requirements include, but are not limited to: passing a test, meeting certain financial requirements, industry experience, clean criminal records, and of course, a surety bond. I can not comment too much on licensing requirements, as they vary greatly depending on occupation and the location of where you are planning on operating. Fortunately, I can go into great detail about getting bonded! As stated above, you are going to want to make certain you can meet all of the requirements to qualify for a license. This is extremely important, as most bonding companies will not do pro-rated returns on cancellations of first year bonds. To get bonded, you will need to find a bond producer (also known as a bond agent). Just as in any profession, the level of competence varies greatly. To learn more please visit our video library to find out how to choose a bond agency.
Be sure to give our agency a chance at wowing you with our competitive rates, fast service, and expertise in the field. We are the first and only agency to date that offers true online surety bond approvals at no charge. You can apply now to obtain a 100% free quote.
What if I don’t need a bond for my license?
Some licensed professions do not require you to post a bond. Clearly this is a bad idea for public interests, as there is nothing to stop a licensee from breaking the rules, and even worse no guarantee that those effected will be compensated in any way. Many licensees ask us if we can bond them to make their clients feel more comfortable. Unfortunately, it is an impossibility, as a surety bond is a three-party agreement and some governing agency must require of you. Otherwise, the bond is not guaranteeing any specific rules and regulations…and a bond that isn’t guaranteeing anything doesn’t do any good other than providing a false sense of security. However, fidelity bonds are an option to get bonded, as they are generally not required and protect against employee dishonesty such as theft. To find out more, visit our fidelity bond catalog.