View Full Version : $1,000,000 Bond Needed !
03-07-2001, 10:58 PM
I bid a job yesterday and the company wants a 1mil bond just to come on their property and work. I have a 1mil insurance policy and I talked to my lawyer and my insurance agent and both are like, why? Even the bonding agent has questions for this one. I can get it, but the bonding agent said they have never heard of anyone wanting that much for lawn care. Anyone have any idea as to why someone would need this much?
03-07-2001, 11:25 PM
Did you ask the potential customer why? Some times customers just aren't aware of the difference between a bond and insurance. Also, some customers don't really understand what a bond is for. You may try educating them a little.
03-08-2001, 01:12 AM
They may be doing this to screen potential contractor. They figure if you want my business, you will get the bond. Also, sometimes previous winners of the contract may get this requirement put in to keep other contractors out. This separates the guys working and living out of their truck to the professional run business like your self. We just had to increase our truck insurance for a contract we one from $100K to $500K coverage. Cost me $50.00 more a month, but gained $50-60K /year in business. Good luck.
03-08-2001, 10:21 PM
The potential customer said that they are supposed to get some more info from the main office about the bond. They were told over the phone that it is required from any contractor wanting to come on their property to do work. I'm trying to meet their every demand. There's some decent money to be made on this one if I can get my foot in the door. I've got my fingers crossed, they were suppose to decide to tomorrow.
From what I understand most of the bids were for mow, trim and blow and anything else was extra. I gave them a bid with everything including one mulch rejuvenation, four season fertilization, one aeration and one overseeding. All of which they were getting every year but paying extra for.
03-10-2001, 09:42 PM
I have $1,000,000 bond for a county job. Just call your insurance company. Mine's less than $700 a year.
03-10-2001, 10:49 PM
I guess I won't be needing the bond for that job. I found out yesterday that I wasn't the low bidder. Oh well.
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