Getting Bonded For Small BusinessSmall Business Bonding By Candis Reade Contractors and other types of small businesses that require entry into a home or business to complete work may want to consider getting bonded. Bonds are sometimes referred to as surety bonds. A bond guarantees that a customer will be paid if the business does not fulfill its contract. Many small business owners who purchase bonds do so for protection in the event that one of their employees steals from the home or business of a customer. In the event that this does occur the owner of a bonded business will only be covered if the employee who has been charged with theft is convicted. There are five types of bonds available to small businesses. They are: • Performance - Work will be performed based on the terms of the contract. • Bid - If you win the bid, you will do the work. • Indemnity- Covers loss if you fail to do the work or if you fail to pay other vendors based on the terms of the contract. • License- Licenses are required by some states for certain types of businesses. You may obtain the license directly from the state. • Payment- States that you will be responsible for paying the subcontractor and material suppliers. If you decide to get bonded, getting bonded for a small business is not a difficult task. You will need to contact an insurance agent that sells bonds. You may check with friends or neighbors who may be able to recommend an insurance agent who sells bonds. You may check your local yellow pages directory for "surety bonds or you may search the internet. Many small business owners confuse bonding with insurance. A bond is not an insurance policy and will not cover any property damage or personal injury that may be caused by a worker. It is important to make sure that your small business has the proper insurance coverage for these occurrences. Getting bonded for small business is relatively inexpensive. The costs vary based on the amount of the chosen indemnity. It is important to keep in mind that most bonding companies will only sell you coverage for an amount that you are able to cover with your current liquid assets. A small business such as a janitorial service may start out with a $5,000 bond. As the business expands the owner may purchase more coverage. Rates for a $5,000 bond may start as low as $150. When getting bonded for a small business, just as with any legal document you must make sure that you have read the document carefully and fully understand before signing. Candis Reade is an accomplished niche website developer and author. To learn more about Small Business Bonding, please visit New Unique Business Info for current articles and discussions. Article Source:
http://EzineArticles.com/?expert=Candis_Reade
|
