Bonded/insurance...Same thing?

Discussion in 'Starting a Lawn Care Business' started by TPnTX, Apr 12, 2005.

  1. TPnTX

    TPnTX LawnSite Bronze Member
    Messages: 1,775

    I was told that commercial properties will require you to be "Bonded" in order to get a job? Is that the same as being insured?
  2. MMLawn

    MMLawn LawnSite Gold Member
    Messages: 3,569

    NO. Being Bonded is totally different than being Insured. A Bond is s "type" of insurance policy that is specific to a task and that is much more costly based on covered amounts than insurance and is somewhat more difficult to obtain also. If you have any bad credit at all or any criminal convictions you will not be alble to obtain a bond. I have both Insurance and a Bond. Bonds are normally small in amount and are issued in $5K and $10K amounts and payable in the event of work default to the person/company that the work is being done for. You can also obtain a "General Bond" that would just be work specific so that anyone could collect if you failed to preform the work. Bonds are also payable in the event of theft by you or your employees (heavens forbid though!).
  3. marko

    marko LawnSite Senior Member
    Messages: 963

  4. TPnTX

    TPnTX LawnSite Bronze Member
    Messages: 1,775

    good article, thanks

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