What does this mean?...

Discussion in 'Starting a Lawn Care Business' started by BVLAWNCARE, Jul 27, 2004.

  1. BVLAWNCARE

    BVLAWNCARE LawnSite Member
    Posts: 88

    I know this doesnt really relate to the lawn business but more in the world of business... I was just wondering what does it mean when a company says that their bonded and licensed? By licensed do they mean that they have a business license or a license for the work they are doing (for example a landscape contractor).... and what do they mean by being bonded?

    Thanks for the FYI folks...
     
  2. polecat63

    polecat63 LawnSite Silver Member
    Posts: 2,655

    It means you have a business license and any necessary licenses for pesticides etc... Being bonded is another type of insurance. There are different types of bonds, but the usual one is insurance against theft by you or your employees. Unless you work inside people homes you probably don't need one. My wife has a small cleaning service and is bonded for $10,000. It's inexpensive, I think we paid $100 for that coverage.
     
  3. Team Gopher

    Team Gopher LawnSite Platinum Member
    from -
    Posts: 4,041

    Hi BVLAWNCARE,

    Here is a quote from this site.

    "Advertisements for home cleaning services often state that the cleaning company is "bonded and insured." "Bonding" in this context usually refers to the protection afforded to the cleaning company's customer if an employee steals from the customer. "Insured" should mean that the cleaner carries liability coverage for personal injuries and property damage, as well as workers' compensation insurance (you should verify that this is what the cleaning company means by "insured").

    While "bonded and insured" is a desirable distinction for a cleaning service, the insurance coverage carried by an individual cleaner or company should be confirmed. Different cleaners may purchase different bond and insurance coverages, which could provide markedly different degrees of protection.

    You should ask the cleaning company for a certificate of insurance documenting the coverage in place. You might also contact the cleaner's insurance agent to verify the existence of insurance and liability limits, and to determine whether the cleaner's work in your home would be covered under the cleaner's policy."
     
  4. JFGLN

    JFGLN LawnSite Senior Member
    Posts: 963

    My understanding is that a bond in the landscape industry is to protect the homeowner if the contractor fails to pay for the materials used in the project. The suppliers can make a claim on the bond if the contractor doesn't pay for the materials used. If the contractor didn't have a bond and didn't pay, the suppliers could place a lein on the home for the materials used. In the State of WA, landscape contactors are required to be bonded. Companies that do mowing and gardening are not.
     

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