The Purpose of a Bonding Company
If you have a business if may be smart to look into not only insurance but bonding coverage. A bonding company will provide protection for your assets in the event of a loss. This is similar to an insurance company with the exception of who exactly a bonding company protects.
Rather than protecting the finances of the insured, it covers the person or business that the damage or loss is being done to.
Some companies may offer both insurance and bonding coverage, while other companies may decide to specialize in one or the other. The process for obtaining a bond is slightly more complicated than obtaining insurance. There must be proof of compliance with local laws, character references, company histories, and various other documentation. A bonding agent would be smart to assess the risk of taking on new clients, as they are essentially agreeing to pay for their mistakes.
Events such as accidents, loss, or even theft, can be covered by a bonding company. Public officials and government offices typically have some form of bonding coverage due to the lucrative work they often engage in. Not every bond or insurance agent offers coverage over everything you may need, so be sure to do your research on what coverage you would be getting before paying a bonding company.
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