BONDED PROFESSIONALS

by Linda Allen)

In a perfect world, everyone would perform as expected, and all contracts would be completed to expectorations. We do not live in a perfect world. Even with the best intentions, things often fall apart. So, we lock our doors, put money in the bank, and buy insurance to cover losses in case things don’t go as planned. Surety bonds are insurance of sorts. Surety bonds are a contract guaranteeing funds to cover any litigation from malfeasance or mishap. Surety bonds of all sorts are issued by bonding companies and purchased by primary parties carrying out a particular job or obligation. The bond ensures that the bond holder is working in good faith, performing as promised, and monetarily backing up the work if problems arise. Even without personal experience, most folks are familiar with bail bonds; a promise to appear in court. However, there are dozens of other kinds of surety bonds. Some, like payment bonds or performance bonds are particular to contractors and builders and insure work will be done per the contract, on time, and all sub contractors paid. There are alsofidelity bonds which cover government officials and employees—anyone dealing with official or secure documents and public monies. Legal bonds ensure that court appointed officials, who deal with other people’s money, and on other’s behalf, will act in compliance with their duties. Conservators, administrators, executors, and third party administrators fall in thissurety bond category. Additionally, there are surety bonds to cover sellers of liquor and tobacco and distributors of milk and livestock. Your travel agent has a hospitality surety bond. People who contract to other businesses such as janitorial, transportation, and guard services must provide proof of surety bonding. Look for charity groups to be bonded as well as any fund raisers. This may a good tip off as to the authenticity of the organization; be sure to check before you donate. When you purchase a home, make sure the real estate agent, the inspector, and the escrow agent are bonded. Credit services as well as lenders must be bonded.