The phrase “licensed, bonded, and insured” is common in business advertising, but what does it really mean? While most people know about the importance of having their businesses licensed (to sell goods or services) and insured, the “bonded” part isn’t so familiar.
In case you’re wondering what a being bonded is, it’s like making an agreement with three parties: the principal (you), surety (insurance/bonding company), and the obligee (your clients). The first two-party commitment guarantees that whoever is guaranteed by this contract will act according to its terms, which can be modified before or after execution if necessary.
The benefits of being bonded as a contractor are significant. The first thing that crosses people’s minds whenever someone mentions bonding is that it makes you more valuable to those who hire you. Here are some financial benefits of being bonded as a contractor.
Protects The Contracted work’s completion
A surety bond ensures that the contractor will do what they say and complete work as agreed. This ensures a client that there are no financial losses to them caused by incomplete work as they can make a claim against the bond if they need to.
Protects Clients From Poor Workmanship
The surety bond provides protection in case any work or practices aren’t up-to-code. It also ensures that clients are assured of your commitment to quality service. Clients can feel confident knowing that if anything goes wrong with the work, they will be taken care of by insurance.
Conclusion
Being bonded is a trust-builder for clients.The main benefit is in what being bonded means: it protects the client from financial loss if a contractor does not perform according to the contract. They know that the risk they take is limited by your surety bond. Taking the time and trouble to become bonded says, “I care about delivering the best to you.”
Don’t hesitate to check out our website for more valuable information on contractors.
