Independent contractors need to get bond insurance through a business insurance broker, according to Entrepreneur. There are a variety of bonds available for contractors in different industries.Continue Reading
When an independent contractor advertises as being bonded, it means that that contractor has paid for a particular type of insurance. Their bond is a guarantee that the contractor will do the work right or the customer will get refunded the fee and any damages. Becoming bonded is usually as simple as finding a business insurance broker and purchasing the right type of insurance, as stated by Entrepreneur. It may be possible to find a broker through the local Chamber of Commerce or look for a bonding company online.
Some independent contractors must also be licensed by their state in order to become bonded, such as those working in construction. This is a requirement made by the broker to ensure that the contractor knows how to do their job and knows the rules regulating their particular field of business. According to JW Surety Bonds, the contractor will need to sign an indemnity agreement, and the bond and also make regular premium payments. The variety of bonds available for contractors and small businesses include, auto dealer, construction, collection agency, mortgage broker and mobile home dealer bond.Learn more about Careers