September 26, 2007 by Michael Weisbrot
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. If you are in need of a bond producer, you should read our article What Makes A Good Surety Bond Producer.
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 obtain a 100% free quote with no obligations by visiting our applying now.
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 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.
I have a windshield warranty company and I need to be bonded in order to protect the dealerships I do business with. Do you have any suggestions?
Respectfully..jim middleton
Comment by james e. middleton — March 5, 2009 @ 3:27 pm
I want to start my own small business Crystal Clean Chandliers, Commercial & Residental. I want to get bonded before I step foot in someones home or business. What type of bond do I need?
Thank You
Chris
Comment by Chris Johnson — March 19, 2009 @ 11:51 am
Chris,
Since the government is requiring you to be bonded, you are looking for fidelity bond coverage. Fidelity bonds are not surety bonds, but a type of insurance. Fortunately for you, they are cheaper than surety bonds!
Try doing a Google search for “CNA Surety”. You should find an application for janitorial fidelity bonds with competitive pricing!
Comment by Administrator — March 19, 2009 @ 1:04 pm
I am thinking of a small “Busy Bee” service, i.e. errands, personal assistant, and possibly small chores around the home. What does it take to get insured and bonded and how much would it cost me? Thank you.
Comment by DJMAC — March 23, 2009 @ 2:04 pm
Insurance I cannot comment on, as we do not write P/C. I would suggest contacting your regular insurance agent for a quote.
As for the bond, I am guessing this is not a government required bond, but one you would like for your clients’ peace of mind…If so, you are looking for a fidelity bond, truly an insurance product, not suretyship. You should be able to get fidelity coverage from your P/C agent. You could also go direct to a carrier (CNA) like I suggested above.
Comment by Administrator — March 23, 2009 @ 2:36 pm
I am thinking of starting a small business of organizing rooms in people’s houses. Do I need to be licensed and/or bonded?
Comment by tina — March 26, 2009 @ 5:38 pm
Tina,
I would venture to guess that the government does not require you to file a license for such services. With that said, there is likely no bond requirement either.
Comment by Administrator — March 27, 2009 @ 10:54 am
I am considering opening a foreclosure clean up and clean out company in Illinois. What kind of bond do you recommend and what is the cost.
Comment by mike — March 30, 2009 @ 11:31 am
Mike,
I am guessing the government is not requiring a bond of you. Therefore, there is no surety bond to obtain.
You can get a janitorial fidelity bond if you’d like. It is a form of insurance not suretyship. Try doing a search for Travelers or Western Surety, they both write these bonds frequently and cheap.
Comment by Administrator — March 30, 2009 @ 11:36 am
I am trying to start a small painting business painting homes in the state of I’ll. What is required bond or licence I just don’t want to get introuble with the law
Comment by katie — March 30, 2009 @ 9:19 pm
Katie,
I think you meant the state of Illinois. I looked on our list of contractor license bond requirements and I only see that roofers are required to be licensed and bonded within Illinois. However, it is still best practice to check with the state to ensure that a license and bond requirement are not in place.
You can see our contractor license bond requirement list by state
Comment by Administrator — March 31, 2009 @ 10:33 am
I’m looking at starting a security /bouncing business. Do i need to obtain a bond?
Comment by Terri — April 3, 2009 @ 3:34 pm
Terri,
It seems that security based businesses often ask whether or not they need to be bonded. It only seems natural that they would, right?
Believe it or not, there seem to be few, if any bonding requirements when it comes to security related businesses. Check with your local and state governments to be sure though!
Comment by Administrator — April 3, 2009 @ 3:49 pm
I teach singing in my home and am wondering if I need a license and a bond. Other singing teachers don’t have these, but in these times, I think it might be a good idea to instill confidence for customers and protect all concerned. Any advice?
Comment by Peter Benecke — April 4, 2009 @ 6:37 pm
Peter,
It seems very common that people want to be “licensed & bonded” so their clients have better trust in working with them. However, unless the government has a license and bond requirement, then there is nothing for you to obtain.
I would assume you don’t need to be licensed to sing, so I think you are good!
Comment by Administrator — April 6, 2009 @ 8:56 am
I am looking to start a painting buisness. What type of bond would i need? and would i need a contractors license?
Comment by Darrell — April 9, 2009 @ 5:55 am
Darrell,
Unless the local or state government is requiring that you become licensed, then a contractor’s license bond is not necessary.
You will want to check with the local and state governments. Here is a list of contractor license bonds by state to get you started: http://www.jwsuretybonds.com/surety-bonds/commercial-bonds/contractor_license_bond.htm
Comment by Administrator — April 9, 2009 @ 9:00 am
im looking to start a small property management company in new york this will involve rent collection and evictions along with some contractin duties what type of bond do i need
Comment by james — April 9, 2009 @ 3:27 pm
If the government is not requiring a bond of you, then you cannot obtain a surety bond, as they are 3 party agreements.
However, you may want to look into a fidelity bond, a type of insurance. We only write fidelity bonds as a convenience for existing clients, not new ones.
I suggest doing a Google search, you should be able to find someone to write it with relative ease…I know Western Surety writes them a lot.
Comment by Administrator — April 9, 2009 @ 3:49 pm
My husband is wanting to get his roofing license and it says that we have to be bonded and insured. The insured part, we have, we are not sure how to go about getting bonding. The big question is: Does anyone know how much it cost to get bonded? As a small business owner and with the economy being like it is, I am not sure if we can afford it if it too much. It’s tough to be small business owner in the world today!!
Comment by Karen — April 14, 2009 @ 1:26 pm
Karen,
It sounds like you are in need of a license bond. If you know the amount you can apply for a free quote online at: http://www.jwsuretybonds.com/surety-bonds/commercial-bonds/applications/apply.php
The costs are typically 1-3% of the bond amount per year, but can be as high as 15% for those with bad credit.
Comment by Administrator — April 14, 2009 @ 1:28 pm
I am starting a pet sitting/walking etc… business in MO. Do I need to get licensed & bonded for this? Thank you.
Comment by Nancy — April 17, 2009 @ 9:04 am
Nancy,
Unless the state or local government is requiring it, then there is no license or bond to file.
Comment by Administrator — April 17, 2009 @ 9:30 am
I am thinking about starting a pressure washing business in Jacksonville, Fl. DO I need a business license and do I need to be bobded?
Comment by Brian — April 22, 2009 @ 1:18 pm
That is something I would check with the state of Florida and possibly your local government.
Comment by Administrator — April 22, 2009 @ 2:13 pm
I am interested in starting a pet sitting dog walking business/ i know i do not NEED to be license bonded and insured, but I would like to be..where do I go for this?
Comment by ALLIE — April 27, 2009 @ 10:34 am
Allie,
As a bond agent, I hear this every day. People want to be able to say they are “bonded”, but they have no idea what they want the bond to guarantee.
In addition, 3 parties are involved in suretyship, not two. Therefore, there must be someone requiring the bond of you (the obligee). Otherwise, you are in search of insurance.
Comment by Administrator — April 27, 2009 @ 10:43 am
I am starting an unpacking business for people who have just moved. I’ll be unpacking their things and maybe doing some organizing. What type of bond should I get?
Comment by Suzanne Snow — April 30, 2009 @ 9:03 pm
Suzanne,
It sounds like you are in need of insurance, not surety bonding.
An employee dishonesty fidelity bond policy is likely a good fit. However, it will not cover you in any way, so it is pretty much useless unless you actually have employees.
Comment by Administrator — May 1, 2009 @ 10:27 am
Hi, I want to start my own Dog walking business here in San Diego CA. I wanted to know if it is neccessary that I need to get licenced, bonded, and insured? And if I need one or all three, how would I go about on obtaining what I need?
Comment by Diana — May 11, 2009 @ 4:41 pm
Diana,
Did you read the article? All of your answers are there.
-Mike
Comment by Mike — May 11, 2009 @ 8:19 pm
I am considering starting a small business to protect persons possessions when they are gone out of the home for a small or large amount of time either due to funeral services, vacations or just simply watching over their belongings. Due to the high volume of criminal activity. I am wanting information on being licensed and bonded in the state of Nebraska. Thanks.
Comment by Lynnette — May 14, 2009 @ 6:58 am
Lynnette,
Is the state of Nebraska requiring a bond of you? Is there a license to obtain? These are questions you need to find the answers to first.
Comment by Administrator — May 14, 2009 @ 11:08 am
I am interested in starting a rep. payee service for DHSH and welfare clients in Washington state. Since I will be handling other people’s money, I’m assuming a bond is a pretty good idea. Will the amount of the bond possibly be determined by the amount of money I’m handling?
Comment by cindy — May 20, 2009 @ 1:10 am
Cindy,
The type of bond you are looking for is called a fidelity bond, a type of insurance. With that said, it is up to you to decide how much coverage you need.
Comment by Administrator — May 20, 2009 @ 9:05 am
I am interested in becomin a payee for profit what type bond do I need. Any other help is appreciated as well.
thank you, denise
Comment by denise — May 20, 2009 @ 8:58 pm
Denise,
What exactly do you mean by a payee for profit? Also, is the government requiring a bond of you?
Comment by Administrator — May 21, 2009 @ 10:56 am
I am considering starting a commercial/residential cleaning service and I was wondering if I should obtain bonding.
Comment by Jacoby — May 26, 2009 @ 10:05 am
Jacoby,
If the government is not requiring it, then there is no surety bond to obtain. You can obtain a janitorial employee dishonesty bond, a type of insurance if you deem necessary.
-Mike
Comment by Administrator — May 26, 2009 @ 10:28 am
I am a CNA looking to do some private care for potential clients in their homes. Do I need to be bonded or licensed and if so, What kind?
Comment by Melinda — May 27, 2009 @ 10:04 pm
Melinda,
You will want to check with the government department that regulates your industry. Do they require you to be licensed? If not, there is likely no bond requirement either.
Comment by Administrator — May 28, 2009 @ 3:09 pm
I am starting a fight league in MN. I spoke with the Minnesota State Boxing and MMA Commission and they told me that I need to obtain a surety bond of $10,000. What will this cost me? I don’t even have a business yet, what do I do? Who do I talk to, I am just an hourly worker looking to make a decent living in the worlds fastest growing sport. PLEASE HELP ME!!! I AM GOING TO LOSE MY MIND!!
Comment by Jamie — June 4, 2009 @ 5:02 pm
Jamie,
Event promoter license bonds are fairly common throughout the country. The cost is generally 1-3% of the bond amount, or $100-300 in your case. However, high risk applicants can see rates closer to 15%.
You can get a free quote online at: http://www.jwsuretybonds.com/surety-bonds/commercial-bonds/applications/apply.php
Comment by Administrator — June 5, 2009 @ 10:01 am
I am looking to start a residential and commercial cleaning business in the state of florida. I have doctor’s office’s that clean be cleaned but they really would like to know i am bonded. What type of bonding do I need I don’t want the cheapest one to get around thing’s with the minimum coverage I want my client’s to feel secure in there decision as I myself would want also. what type of good bonding should i look for?
Comment by pam mahaffey — June 14, 2009 @ 4:35 pm
Pam,
Custodians typically are not required to be bonded at all. Therefore, what you are looking for is insurance, specifically, a fidelity bond. Check out Western-CNA’s offerings on janitorial bonds at: http://www.cnasurety.com
Good luck!
Comment by Administrator — June 15, 2009 @ 9:40 am
my husband and I are considering openin up a repo business what type of licensing and bonding do we need?
Comment by mrs. b — June 20, 2009 @ 9:04 am
Mrs. B,
Likely nothing. However, you will want to check with your local and state government to make sure prior to operating without a license.
Comment by Administrator — June 22, 2009 @ 10:07 am
I’m lookin to start a small cleaning LLC in Louisiana with a couple of my relatives…Do I need to get licensed or bonded and if so what type should we get?
Comment by Clifton — June 25, 2009 @ 10:21 pm
Clifton,
That depends…Is the government requiring it of you?
Comment by Administrator — June 29, 2009 @ 3:43 pm
I want to start my own cleaning service in Seattle, WA.
Do I need to be licensed and bonded?
I have seen alot of companies online that say they are licensed and bonded, is it a neccessity?
Comment by Danielle — July 23, 2009 @ 1:20 pm
Im looking into a pet services (waste removal, daily visits, walking, pen cleaning) business. Would being bonded and insured be something that would be more for client peace of mind, or legally required. Im in Chesterfield County, Virginia.
Comment by Shellie — July 24, 2009 @ 10:05 pm
Shelie,
I have never heard of a government bond requirement for those services.
Comment by Administrator — July 27, 2009 @ 9:43 am
I have a side business. I clean homes for investors before they go on market. I could probably expand the business and gain more clientele if I were bonded. My credit is a mess right now so based on what I read, is my approval contingent on a personal credit report? If I cant get more income than outgo I am never going to get my credit straigtened out so Im in a pickle here. I am only on site for the investor a few hours per visit and the homes are vacant and I bring my own supplies.
Comment by Debbie — August 7, 2009 @ 5:15 pm
I'm looking at starting a home cleaning business. I seem to have a lot of the same questions that you do. If you get a reply and get some time I would a appreciate it if I could hear what they have to say. My email is katy.and.ikes.daddy@gmail.com Thank you for your time and good luck.
Comment by Scott — August 8, 2009 @ 4:56 am
Debbie,
Since the bond is not being required of you, surety bonding is not what you need. A two party bond is actually an insurance product referred to as a fidelity bond or employee dishonesty policy. The latter name is a bit more descriptive. Try http://www.cnasurety.com, and look for a janitorial fidelity bond.
Comment by Michael Weisbrot — August 10, 2009 @ 2:18 pm
Debbie,
Since the bond is not being required of you, surety bonding is not what you need. A two party bond is actually an insurance product referred to as a fidelity bond or employee dishonesty policy. The latter name is a bit more descriptive. Try http://www.cnasurety.com, and look for a janitorial fidelity bond.
Comment by Michael Weisbrot — August 10, 2009 @ 2:18 pm
Debbie/Scott,
Since the bond is not being required of you, surety bonding is not what you need. A two party bond is actually an insurance product referred to as a fidelity bond or employee dishonesty policy. The latter name is a bit more descriptive. Try http://www.cnasurety.com, and look for a janitorial fidelity bond.
Comment by Michael Weisbrot — August 10, 2009 @ 2:18 pm
Debbie/Scott,
Since the bond is not being required of you, surety bonding is not what you need. A two party bond is actually an insurance product referred to as a fidelity bond or employee dishonesty policy. The latter name is a bit more descriptive. Try http://www.cnasurety.com, and look for a janitorial fidelity bond.
Comment by Michael Weisbrot — August 10, 2009 @ 2:18 pm
IM STARTN A CLEANING COMP, N WOULD LIKE 2 KNO WHAT TYPE OF INSURANCE IS NEEDED. SO I COULD BE INSURED N BONDED.
Comment by RoderickFrenzley — September 14, 2009 @ 4:38 pm
Hi i’m would like to start a Bill Paying Service in CA to help seniors stay on top of their bills. How do I get bonded?
Thanks,
AJ
Comment by AJ Lewis — September 23, 2009 @ 12:14 am
I’m considering to start my own security company and wanted to know how much it would cost to get licensed and bonded?
Comment by Hollis — September 27, 2009 @ 6:24 pm
Hollis,
Is the government require you to file a license? If so, are they requiring a bond to posted with the license? If the answer is no, then there is no bond to obtain.
Comment by Michael Weisbrot — September 29, 2009 @ 10:28 am
I'am a convicted felon looking for work and nobody will give me the chance based on my past record, can I be bonded to protec possible employers from there worries about my felonies?
Comment by Charles hill — November 2, 2009 @ 4:11 pm
Charles,
This is a common question we get asked. Unfortunately, the bonds we write are ones required by the government. Unless they are requiring it of you, we cannot help.
Try asking your regular P&C insurance agent.
Comment by Michael Weisbrot — November 2, 2009 @ 4:17 pm