Businesses that are licensed and bonded are generally known as more trusted resources. But what does it mean to be bonded? Bonds, in the simplest sense, are guarantees that the job will get done satisfactorily. If work is not completed according to the contract between the property owner and the business performing the work, the bond insurer will cover the expenses required for project completion.
Many occupations are required to have surety bonds before they can obtain business licenses, which they need in order to operate legally. There are hundreds of different surety bonds available to cater to the many occupations that must purchase them.
Surety bonds allow property owners to hold businesses accountable for their professional performance. This protects consumers from dishonest or incompetent workers. Bond insurers can choose not to bond risky businesses, forcing them to shut down. This limits each field to the most professional and trustworthy businesses. Because of this, consumers feel more comfortable letting workers into their homes with the financial guarantee of a bond.
If a project is expected to exceed the amount of a bond, a performance bond can be purchased by the business to cover the full cost of the project. Just as with surety bonds, the property owner is guaranteed compensation if a job is not completed according to contract. Ensure that all contracts are specific to avoid any confusion in the event of filing a claim.
Bonded businesses attract more consumers with the promise of a job well-done. Call McFarlin Insurance Agency at (410) 312-7800 for more information on Maryland surety bonds.