Insurance And Bonding

3ndAhammer

hey yall ive done remodel for about 4 yrs and just finished a job on baylor hospital in dallas and i want to branch out on my own and was wondering what and where i can get insurance and get bonded and what exactly that is. sorry for the dumb question just trying to get started on my own. thanks

bockcorp

You don't know what insurance and bonding is?

orson

Let's not be too harsh....

If he doesn't know what insurance is I'd be worried, bonding is another matter. For a general liability insurance (GL) policy contact any insurance broker in your area that handles commercial coverage.

If you look up "bonding" on Wikapedia there are more than 11 definitions, and that is just under fiduciaruy bonding as opposed to the 6 other categories.

In this case the definition we are concerned with is:

"Surety bond, a three party contract, where the surety promises to
pay the obligee for non-performance or dishonesty by the principal"

In this case you as the contractor are the "principal", your customer is the "obligee" and the bonding agency is the "surety"

Here is another type of surety bond that is taken out for a specific project:

" Performance bond, a surety bond for completion of work under a
contract"

An insurance company who handles commercial insurance often does bonding. There are also companies who specialize in bonding.

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