Bond...stinkin' Bond

simplejack

I stopped contracting to start a new business, so I placed my license on inactive status, I asked my broker to cancel my general liability insurance and to tell my bond company that i will no longer be in business as a contractor.

18 months (and a failed business attempt later) I tried to re instate my license. when I contacted the bond company (through a broker) I was told that I owed $460 for my previous bond. the bond company told me that their bonds will automatically renew unless specifically canceled. I told them that I hadn't reneged on any contract because my contract with them had expired, that the bond i had purchased was for two years and I simply had not renewed, that in fact I was out of business and not using my license.

well my broker told me that they called but that i had to cancel the policy myself. I had gotten mail from this bond company but I thought it was just more unsolicited "junk" and I never opened their bill. I guess ignorance is no excuse but I never knew this was how things worked.

I paid the $460, and applied for a new policy. I guess my credit score dropped since, because to get a new bond it will cost $570 for ONE YEAR!

Bonds, why do we need stinkin' Bonds!