Credit Repair Home Business
If an insurance bond is backed by cash and assets how do you acquire one?
If I’m looking to get bonded for a small home repair business how do I acquire an insurance bond for say $20,000 without having $20,000 in the bank or assets equaling that. My credit is excellent, is that good enough?
Not unless a bank is willing to issue an irrevocable letter of credit (effectively, an open credit line that you can’t tap, and they can’t close).
Why do you want to get bonded for your home repair business? ARe you going to buy a bond for each and every client you have? Because it’s not like insurance – it only bonds you for the client you name – and you can only name one client per bond!
You need to sit down with your agent who writes your liability coverage, and have them explain all this to you. I don’t think you need a bond. It doesn’t do what you think it does.
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