What is a surety bond?
First a surety bond isn’t an investment like corporate bonds. A surety bond is sometimes required for certain contracts or transactions. it is a guarantee issued by an insurance company or financial institution , that a contract will be complete as promised. Simple example if you are contractor doing work for the government you typically have a surety bond. The bond protects the government if you fail to do the work as promised. If you promise to build a school and fail to finish it, the surety bond would pay to complete the school and the insurance company that issued the bond would have to pay for the work you didn’t do.
How do I become licensed, bonded, and insured?
Licensed: Apply for a business license at your city or county office. If you don't know which to go to, check out their website or give them a call.Bonded: Apply for the appropriate surety bond through an insurance company or a company who specializes in surety bonds. If you don't know what kind of bond you need, use this tool: Determine What Kind Of Surety Bond You NeedInsured: Purchase the appropriate insurance policy from an insurance company.Companies who state they are licensed, bonded, and insured are telling their customers that they have taken the necessary steps to not only get a license, but get a surety bond and insurance. Getting a license is different than getting a bond and also different than getting insurance. All 3 things are evaluated on different aspects. If you are licensed, bonded, and insured, you are telling your customers that you have:Met all local and state lawsBeen evaluated by a surety company on your work history, credit history, and other important aspects, and approved for a bondBeen evaluated by an insurance company and approved for insurance
How do you become bonded and insured?
Such words are often found on vehicles of contractors, together with "licensed". The insured part is easy enough; go to an insurance company and buy insurance to cover your operations. Done.The license is usually awarded by the state (or maybe a county or city) to indicate the person has passed a test which qualifies him as a plumber, general contractor, of whatever. But issuing the license may also require a bond, which basically is a financial guarantee that the licensee will follow all the rules and do all such other things as the bond itself provides. The State (or other jurisdiction) writes the bond wording.The financial guarantee is provided by a "surety," being a financial entity, such as an insurance company, who will pay up to the amount of the bond if the licensee is found to have violated the regulations governing his or her work.Now, here's how it works: Let's say our plumber is finally caught billing for work not performed, using defective parts, etc. Bingo! The state cancels his license and "calls" the bond. The surety hands over a check for $50,000 (or whatever). Then what happens? The surety turns to Joe and says, "now you pay us."Thus the surety wants to know two things: is the obligor (the plumber) competent to do their work? And can s/he pay us back if the bond is called? To answer the 2nd question, the surety may want to see a bona-fide financial statement indicating the net worth of the plumber is more than enough to pay them in case everything goes bad. The important thing is to understand that a bond is NOT insurance. If it pays off, the the contractor has to pay the surety back.Now as it turns out, many bonds (especially court bonds) are so routine that they are issued like movie tickets. But others, such as those for big construction projects, can be very difficult to obtain. The contractor basically has to be so financially sound that they don't need the bond.Where to get the bond? Insurance agents.Hope that helps.
What does bonded insurance mean?
Hello!Bond Insurance NYC is a very important part of protection from financial risks. The bottom line is that you insure your financial incomes. And in case of the company, in which you invested money, is not able to pay your interests for some reasons, we will compensate these costs. This type of insurance is widely used among investors. But also companies insure very often their incomes. And in case when things go wrong and you have not as much income as it was expected, we can help you.Investors. Any investor, no matter is it a private investor or public agency and organization, wants his investment to pay dividends in time. Because the bottom line of investment business is to get regular income after the investment in particular business. In this case Bond Insurance is the ideal variant for investors.Public agencies. Public agencies can be investors. Different public agencies or public organizations often invest money in development of some companies or ideas. It’s very important to insure all risks connected with possibility that something can go wrong.Private investors. Private investors constitute large percentage of general investments. Every day hundreds of meetings are held and thousands of agreements about investment of costs in different branches of economy are signed. We help to make your investments to be a win-win situation. With our Bond Insurance you can be confident that your investments will bring an expected income in any case. Let’s agree that you have more quiet sleep when you know that those dollars, which you invested, will definitely pay off thanks to reliable Bond Insurance NYC.I hope, I helped you.
Cost to get a cleaning business licensed, insured and bonded.?
Hello! I clean small offices and will try to answer some of your questions. For a business license call your local city or county clerk's office and ask what the requirements are. They should be able to tell you. A business license is not always required-just preferred. It's mostly used to open a business bank account and for the local government to track (tax) you. They usually aren't very expensive, under $50 for a year, and sometimes two or more years. Liability insurance, or a bond, can be found through insurance agencies. But, the premium varies a lot from one company to another, so call a bunch and get quotes. Discuss with them about how much you think you need to start and how to increase it. Once you have selected an agency or agent, keep in touch with them. I have gotten some good leads from my agent about need businesses, etc. I have tons of tips and resources for you on my Squidoo lens and blog about starting a cleaning business. The links are in my Profile. Good Luck!
Judge has ordered a $5000 surety bond what does this mean and how do I pay it?
The $5,000 is to compensate the other party for tying up his property during the course of the litigation. If you win, you'll get it back. If you lose the other party will seek its costs and damages from the bond. You can post bond by delivering a check for $5,000 to the Clerk of the Court. They should have a bond form for you sign. Or your lawyer should. Or, you can call a bond agency -- in the yellow pages, which will post the bond & handle the paperwork for a fee, usually 10%. You will still have to secure the bond, with CD, mortgage, or the like. Suggest you hire a lawyer who will take care of everything.
What is a surety bond for jail?
Surety bonds for jail are commonly known as Bail Bonds. Bail bonds secure the release of a defendant from jail, and ensure that the defendant appear for trial.There are 2 types of Bail Bonds: Civil and Criminal.How Bail Bonds work:Judge will set a bail bond amount and then require that the defendant pay a percentage of this amount, typically 10% of the total bondIf defendant appears in court, bond is refunded to the person who posted itIf defendant does not appear for court, bond is forfeited and the court requires the remaining 90% of the bond to be paidHere is a good post on how bail bonds work: How Do Bail Bonds Work?
What do you need to become a bail bond agent?
I have been a bondsman since 1997. Bail agent licensing is generally regulated by a state's Department of insurance. I would contact them for licensing requirements. It usually takes some time to complete the requirements. Bail bonding offices routinely hire non-agents as staff to do things like answer the phone, file and other office related tasks that don't require bail agent licensing. This might be your best bet for a summer job. I would prepare a resume and go your local bail bond offices and ask if they are hiring support staff and if you wish pursue licensing at the same time. Good luck.
Why does a housekeeper have to be bonded (as well as insured)?
Most of the time, there's no law that says they have to be bonded, OR Insured. When there IS a law that says they have to be bonded, they have to have the bond TO THE STATE, or the city, or the governmental office. There are lots of different kinds of bonds. Bonds are NOT transferrable, like insurance. Insurance will cover her, if someone - anyone - sues her. A bond is a straight three party contract. It says (in your case, making up numbers, for a performance bond), If Jane Doe doesn't clean the house by 01/15/08, XYZ INsurance will pay Jim Smith $1,000. Or for a license bond, XYZ Insuarnce will pay the city of Boston $2,000 if Jane Doe violates the terms of her license. So when someone like you talks about bonding, you REALLY usually mean, dishonesty coverage. Well, that's an insurance coverage that EXCLUDES THE NAMED INSURED. So it only covers her EMPLOYEE who steals, and only until the theft is discovered, and only if charges are pressed, and only after the deductible. If you think she's the kind to steal, DON'T HIRE HER. For her to buy a true bond - at the cost of $250 per job, well, that's a HECK of a large cost for her to pay for insurance. The real problem is, people throw around the terms "bonded and insured" without having a really concrete idea what they mean. And the bonded, well, YOU can't put a "claim" in under a bond, unless YOU are the Obligee - which means, you have a copy of the bond NAMING YOU as the covered party. I'm not saying it's not necessary. I'm saying, you the client, and she the housekeeper, both probably don't want to shell out the $$ to pay for the coverage for just this one job. And it doesn't carry over.
How much do Surety bonds cost through State Farm?
The costs of surety bonds depend on many factors, including the surety's premium filings with each state's Department of Insurance, the financial strength of the principle, the type of bond being requested, what work is being guaranteed, etc. The best course of action for a principal looking to get surety bonds and to get the best overall deal (lowest price isn't always the best scenario - for example you may pay a little more with a surety that will allow you to get more/bigger bonds, and subsequently help your bottom line more), I strongly recommend you find a surety-savvy agent to discuss the particulars of your situation and match you with the best fit in the surety market. You can start by looking at www.nasbp.org and searching by state and city.