Getting Bonded

Discussion in 'Starting a Lawn Care Business' started by cookcd, Feb 6, 2006.

  1. cookcd

    cookcd LawnSite Member
    Posts: 8

    There is a school in my area accepting bids, and they want the company to have a security bond. What does this amount to anyhow? How hard are they to get, and how expensive are they? :confused:
     
  2. Green-Pro

    Green-Pro LawnSite Bronze Member
    Posts: 1,420

    I'm pretty sure its guaranteed money deposited in an account in lieu of insurance. In other words instead of insurance you provide the cash with the guarantee that it is for accidents, damage, etc. caused by you. I really know very little on this, but pretty certain it can be expensive and that most folks only use this method when they can't get commercial general liability insurance.

    Kind of like a secured credit card where you give the credit card company $500 and that is your credit limit. They still bill you for charges, the $500 is a just in case you default.

    Anyway, like I said I'm not absolutely certain of this maybe somebody with more knowledge can shed more light on this.
     
  3. cpritch

    cpritch LawnSite Member
    Posts: 77

    A bond, in my opinion, is basically a rip off for you.

    By being bonded, all that tells your customer or potential customer, is that there is some company out there (the bonding company) that will make sure YOU pay if you damage something on their property. It isn't insurance, it isn't anything, except you paying money to someone to guarantee that YOU will pay in the event that you screw something up. I think it's a scam. But, a lot of people require it, so. . . .:realmad:
     
  4. Tim Wright

    Tim Wright LawnSite Bronze Member
    Posts: 1,034

    To be bonded is indeed a rip off.

    I just checked on this, and what a joke.


    For me to be bonded for the state of WV, for 1mill. would cost me over $10k up front.

    Just another way to steal your hard earned money. BTW- Don't think for a moment that someone won't be earning interest off of your money and it won't be you, when it leaves your hand and goes into theirs for holding.

    Tim
     

Share This Page