Many businesses are bonded, from multi-million contractors to housekeeping to online merchants selling items on eBay. These businesses are enjoying the benefit of being bonded and insured, such as getting an edge over the competition and generating more business. It also provides protection for the customers from theft and when business or contractors do not complete assigned work.
Things you will need to finding out if a contractor or business is bonded and insured
Proposal Package from Business/Contractor
BBB Business Reliability Report
Steps to finding out if a contractor or business is bonded and insured
Perform background checks. Contractors are quick to tell if they are insured and bonded. Before a client or a customer grant a contractor the job, they should screen applicants by reading their proposal package and by looking up their profile on the yellow pages, their website and the Internet. Because most customers or clients require contractors to be bonded, businesses or contractors ensure that the public know they are bonded and insured because it is one of the major things the customer will look for. Check out their BBB Business Reliability Report and for online businesses, look for the buySAFE seal on the seller’s profile and item.
Discuss with the business and contractor, request for their bond and insurance information details. Collect their insurance and surety bond companies name and their account number with the companies. Clients of big businesses or contractors require that the contractors provide a copy of the bond for contracts above $100,000 as a condition of contract award. A bid bond will be used to guarantee that the contractor will enter into the contract at bid price. When the contract is awarded, require contractors a performance bond. It is the type of bond to guarantee that the work will be done when the contract is awarded to a specific contractor.
Contact the contractor or business insurance and bond department or the surety company to confirmation the validity of the bond and insurance. Look for the following details when authenticating the surety bond presented: bond number, name and address of principal name and address of oblige, date bond was created , amount of the bond, amount of payment bond, name of person on behalf for the surety, brief description of contract price and project. For online businesses, click on the buySAFE seal to ensure that it’s real. Merchants who have the buySAFE seal are guaranteed to be reliable merchants, hence, providing buyers the peace of mind.
1. BuySAFE: Buyer Security Center
2. What’s All the Noise About Surety Bonding
3. Better Business Bureau: What Does “Bonded and Insured” Really Mean?
4.The Surety and Fidelity Association of America: Verify Your Bond: User Information
5. Better Business Bureau: Home Improvements