licensed bonded and insured
Why Your Business Should Become Licensed, Bonded, and Insured
Consumers are often told to only work with businesses that satisfy all three requirements and many businesses focus on these terms in their advertising. But what does it actually mean? What are the advantages of getting licensed, bonded, and insured as a business? What do customers view as the main advantages of hiring companies that are licensed, bonded, and insured?
That is also the recommendation of the Better Business Bureau, which says hiring a contractor who is licensed, bonded, and insured is “crucial,” and you need to verify that the information is legitimate and current
As a business owner, you may have run across the term “bonded and insured.” If you find yourself going wondering what those terms mean, We’re going to break it down a bit for you to understand. you are licensed, bonded, and insured, you have the required licensing for your business, proper insurance and you have made payments for additional coverage with a bond
Being bonded means that a bonding company has secured money that is available to the consumer in the event they file a claim against the company. The secured money is in the control of the state, a bond, and not under the control of the company A “bond” does not always guarantee that the client will be protected as a result of having that bond. This is because there are two basic types of bonds businesses can purchase:
* Surety Bonds (broken into thousands of kinds, depending on the industry).
* Fidelity Bonds (business bonds, employee dishonesty bonds, and ERISA bonds).
For certain professions, a license is necessary to show that you’re competent and permitted to conduct business in the city, municipality, or state in which the license was issued. Depending on the type of business you’re running, there are one of two ways you will acquire this.
* Purchase a business license.
* Complete a mandated test to obtain a license.
When a company is insured, it means that it has transferred any number of risks to a third party through an insurance product. There are many types of commercial insurance that can protect businesses from a variety of risks, but keep in mind that not every business needs every type of insurance.
Being licensed, bonded, and insured may not be required in every situation, but it can provide significant benefits regardless.
In addition to offering a sense of security to your clients, having a business license can actually protect you as well. In some states, it can help you collect damages when a client refuses to pay.
Compare your business insurance in these states: Alaska, Arizona, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Maine, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Jersey, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, West Virginia, Wisconsin, and Wyoming.