Bonded? Why?

Discussion in 'Business Operations' started by Woodland, Oct 1, 2007.

  1. Woodland

    Woodland LawnSite Member
    from Maine
    Posts: 207

    How many of you are bonded any why? I recieved a bid package from a prop. mgmt company for a local bank branch and I was reading the sample contract and was astonished by the insurance requirements they have listed, but was mostly struck by the requirement that I have "Fidelity third party bond coverage of all employees providing services under this agreement" and for 100,000 no less.

    I was somewhat familiar with what bonding was, and after discussing it with my ins. agent learned that the bond covers me personally so the bond would be limited in amount to my personal net worth. So according to the contract requirements every employee that I use on that site would need 100,000 bond coverage...wonder whether the high school kid or the college kid working summers with me would have a better chance of hitting 100k net worth?

    It seems like getting bonded for landscape work (or maintenance work in this case) is overkill? What do you guys think?
     
  2. DiyDave

    DiyDave LawnSite Bronze Member
    Posts: 1,695

    Sounds to me that the management co doesn't know what they are doing, might be a good reason to let this one pass!
     
  3. bohiaa

    bohiaa LawnSite Fanatic
    Posts: 5,220

    this is NOT out of the ordenary.....

    I have had several bonds. no biggie....

    We service about 7 homes that are over a million and home owners just want to feel good.....

    as for a business I have never had to do it......

    these bonds are about 10 bucks...no biggie

    and it looks good on advertisement
     
  4. lifetree

    lifetree LawnSite Fanatic
    Posts: 5,369

    For million dollar homes I could see it, however, for a bank with a vault and employees there during the day ... it seems like overkill to me !!
     
  5. lifetree

    lifetree LawnSite Fanatic
    Posts: 5,369

    For million dollar homes I can see it, however, for a bank with a vault and employees during the day ... it does seem like overkill to me !!
     

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