Today’s consumers are an educated group, arming themselves with the knowledge of what is available to them and how to get it for the best price, without compromising on quality. But, another factor they consider is how to ensure that they are protected, should anything go wrong with their purchase. That’s why “Free Shipping,” “Free Returns,” and “Money-Back Guarantees” have become the norm in so many retail businesses. But how does that translate to you, a Florida General Contractor? We’ve all heard the phrase, “Licensed, Bonded and Insured,” and you might see it on fellow contractors’ business cards as well. At Contractors Reporting Services, we specialize in licensing, renewals and Corporation set-up, and part of the process is informing you about insurance requirements to keep you in compliance with state regulations. One of the primary requirements to obtaining a contractors license in FL is to secure Liability Insurance, however being bonded is not required. But just because something is not required in order for you to gain a license, doesn’t mean that it isn’t worth considering, especially when you will want to be protected against as many professional risks as possible.
According to wikipedia.org,
A surety bond is defined as a contract among at least three parties:
- the obligee – the party who is the recipient of an obligation
- the principal – the primary party who will perform the contractual obligation
- the surety – who assures the obligee that the principal can perform the task
For our purposes, the Obligee is your customer, the Principal is you, the Contractor, and the Surety is the issuer of the contract or “guarantee”, if you will.
Being “Bonded” tells your customers that you are willing to be held accountable to honor the claims you make and stand behind the work you and/or your crew performs, even at additional cost to you. This provides a safety net, and peace of mind, for your customer in the sense that they can feel assured that they will get exactly what they are paying for and they are protected in the off-chance that you are unable to deliver on your promised product. Whether the loss is due to a lapse in follow-through on your part, defective products or workmanship and other damage caused by your crew in the process of completing a job, the surety will pay damages to the customer, according to the contractual obligations. And, although we would all like to believe that we would never find ourselves in those types of situations, reality isn’t always as we imagine it and many things happen that are outside of our control. An added protection against unknown variables is always a good business plan.
Whether you decide to get bonded or not, the decision is all yours, but it is important to consider all possibilities and be prepared for the financial implications if damage is caused and a settlement is brought against you. At Contractors Reporting Services, we are experts in the field of contractors licensing requirements and we are here to answer any questions you might have about how to become a contractor. Don’t hesitate to call us.
Contractors Reporting Services
13795 N Nebraska Ave,
Tampa, FL 33613