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Bonding coverage is required by law for many businesses such as contractors, agencies, janitorial companies and more. Policies help ensure that the job a company is hired to do is performed. Bonding also protects your customers against potential losses.
You have likely heard the phrase “bonded and insured”, if you are not sure exactly what that means, you are not alone. Businesses that are “licensed, bonded and insured” have the required licensing, proper insurance and made payments for extra coverage in the form of a bond. There are different types of bonds including Bid, Contract, Performance, Payment, Maintenance, License & Permit, public official, court and probate and more. The cost of a bond depends on several factors including your company's financials, the type of bond and amount required.