Most anyone who has had work done around their home knows about bonding. Most anyone dealing with a contractor knows the importance of hiring a professional who is licensed and bonded. And, anyone who has been stung or left high and dry by a contractor or workman in the course of home improvements truly knows the consequence of not hiring someone bonded. Ok, pretty common knowledge. However, not many of us are aware of the over 100 types bonds that are issued.
Surety bonds fall into two major categories: contract bonds and. A third, bail bonds, are handled by a separate kind of agent apart from the insurance agent, and guarantees payment to the government if the terms are not met. A contract bond gives the consumer some legal ground should the bid not be honored or the work not be done as agreed and on time. A contract surety bond is issued by a bond agent, and the bond guarantees that the contractor will perform as agreed. Contract surety bonds fall into several subcategories, but most all have to do with construction and include bid bonds, payment bonds, maintenance bonds, and subdivision bonds. This last type of bond is exclusive to city, county, or state construction.
Commercial surety bonds cover a vast number of circumstances. For instance, officer of court, sheriff, tax collector, notary-bonded, sell vehicles or liquor-bonded. If you run a health spa or help people find jobs, if you are a pawn broker or a yacht broker, you are required by the Attorney General to be bonded. All entities that deal with Medicare and Medicaid must secure a medical industry bond. Those working as travel agents, real-estate agents, talent agents, and insurance agents are also required to be bonded.
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