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Discussion in 'Business Operations' started by Eazy Cutters, Nov 7, 2006.
Is being Bonded very important if you are already licensed and insured?
All depends on what you are doing. landscaping you need to be bonded in most states, landscape maintenance you do not. (at least not in Oregon) Can't speak for other states because I don't know. You DO need to be licensed, insured, and have all the other necessary legal items. Do the research for your state first, then do a local or city search of what is needed. I would also call your contractor board to find out.
In 13 years, bonding has never been an issue in my business. I would think you would have to be doing over 1M a year in sales and/or have a bunch of municipal/government contracts for this to come up or be an issue.
Maybe my ole bud Mike from MMLawn can add too this...
Talk to your insurance agent about bonding. As it was explained to me, bonding is more applicable to a businesses that enter the home and could cause alot of damamge or theft. Also with Bonding, the claim is filed with the bonding company and they pay, then they (the bonding company) collects from you. So basically it is a way to say that yes, I am good for the possible damamges with the backing of XXX Bonding company to prove it. I was told that in our business (Lawn Care and Landscaping) having insurance is enough, you do not need to be bonded. Most people do not know the difference.
Bonding is required for most gov, jobs to insure completion date and your ability to actually do competant work