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Rather, bonding is required because experience has shown that when people are entrusted with the money or property of another, there will be instances when individuals will cause a loss through fraud or dishonesty. Bonding is therefore required to insure the union against such a loss.
How Much Does a Performance Bond Cost? The cost of the bond is determined based on the amount of the contract. As a good rule of thumb, most preferred contractors get rates between One to Three Percent (1-3%) of the value of the contract with riskier contractors getting additional costs of 1-1.5%
Benefits of Being Bonded and Insured Having both insurance and a bond can give customers confidence that your business is legitimate and that they wont be left holding a large bill if you fail in your work. Plus, many large clients require business partners to have general liability insurance and bonds.
Bonding, in the professional world, is getting a form of insurance for yourself that protrcts the employer and company you work for. It protects the business owner from harm, including issues of theft and can also compensate them for property loss.
It is the process of nurturing social connection. Bonding typically refers to the process of attachment that develops between romantic or platonic partners, close friends, or parents and children. This bond is characterised by emotions such as affection and trust. Any two people who spend time together may form a bond.
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Licensing laws vary ing to location and industry. Being insured means that you have purchased insurance, and you are covered if you need to file a claim against that insurance. Being bonded means that someone else is covered if you need to make a claim against the bond.
Bond insurance is a type of insurance policy that a bond issuer purchases that guarantees the repayment of the principal and all associated interest payments to the bondholders in the event of default.

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