Register free!
Search
 
     

The Green Industry's Resource Center


Click for Weather
Reply
 
Thread Tools Display Modes
  #1  
Old 04-26-2002, 09:52 AM
jayandlo jayandlo is offline
LawnSite Member
 
Join Date: Apr 2002
Location: Georgia
Posts: 35
Bonded?

My husband and I are new to the business and we had a potential client ask us to become bonded. How is this done? Cost? Etc.
Reply With Quote
  #2  
Old 04-26-2002, 11:06 AM
prairie prairie is offline
LawnSite Member
 
Join Date: Nov 2001
Location: kansas
Posts: 115
Never thought of that one before. My biz is a LLP, Limited Liability Partnership. Someday maybe INC.. If you need to set set up you should contact you local Sec. Of State office and it wont cost but $100 to do so.
Reply With Quote
  #3  
Old 04-26-2002, 11:22 AM
bruces bruces is offline
LawnSite Senior Member
 
Join Date: Jun 2001
Location: Independence, MO
Posts: 648
Re: Bonded?

Quote:
Originally posted by jayandlo
My husband and I are new to the business and we had a potential client ask us to become bonded. How is this done? Cost? Etc.
A bond is generally issued by your insurance company. The fee is based on the amount of the bond. The bond is to insure performance (generally). In other words, if you have a contract to perform services (generally in a construction type scenario) if you do not complete the contract, the bonding company will cover the cost of having someone else complete the contract.

Sometimes it is difficult and / or expensive for a small company to get a bond.

Talk to the client and see if they are really concerned about liability. If that is the case maybe liability insurance coverage is really what they are looking for.

Another type of bond is to protect against theft (an employee has a position that allows them access to company funds, they might be bonded so that if they embezzle the bonding company will reimburse the company.)

Talk with the client further to find out exactly why they want the bond and what their concerns are. Maybe you can work around it.

If it is an absolute requirement, find out the cost of the bond first and factor that in to your bid. I don't think you will find many customers that require you to be bonded.
Reply With Quote
  #4  
Old 04-26-2002, 12:33 PM
John Allin John Allin is offline
LawnSite Bronze Member
 
Join Date: Sep 2000
Location: Erie, PA
Posts: 1,489
The bond market has tightened up considerably in the past 6 months.... Talk to your insurance agent about this. It's their forte'.
Reply With Quote
  #5  
Old 04-26-2002, 08:08 PM
Lanelle Lanelle is offline
LawnSite Bronze Member
 
Join Date: Feb 2000
Location: No.VA, zone 7
Posts: 1,361
What has caused this tightening of the bond market? (If the answer is 9-11 I think I'll scream.)
__________________
Lanelle
Reply With Quote
  #6  
Old 04-26-2002, 08:53 PM
rodfather's Avatar
rodfather rodfather is offline
LawnSite Fanatic
 
Join Date: Aug 2001
Location: Clinton, NJ
Posts: 9,632
Very accurate reply, bruces.
Reply With Quote
Reply

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump





Powered by vBulletin® Version 3.8.6
Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.
Copyright ©1998 - 2012, LawnSite.comô - Moose River Media
All times are GMT -4. The time now is 01:44 AM.

Page generated in 0.08816 seconds with 7 queries