what does being bonded mean?

Answer this question

  • what does being bonded mean?


Answer #1 | 16/12 2013 20:51
Bonded means that the company is insured against loss - for example, many companies bond against theft by employees. For example, an armored truck company would obviously want to bond itself against the possibility of it employees ripping off the money in the truck - the bonding/insurance company will do background checks to make sure the employees have no priors, etc. Most legit tradesmen (plumbers, electricians, etc.) are bonded against damage (for example, an electrician might be bonded against the chance of burning down your house). Basically, the bond protects the customer against the job not being performed, performed correctly, or other damage done by the contractor.
Answer #2 | 19/12 2013 13:35
a bond is like an 'insurance' you pay up front for something that might or might not happen in the period it covers ie. professionals get bonds to use in case someone has a basis to sue them for some infraction they performed in their services

Possible answer