License Bonds in Detroit, Michigan
Know the Cost
Unlike other kinds of bonds, license bonds are not designed to protect you. They’re created to ensure that the public is protected, especially in situations where you do something wrong and put the public at risk. To that end, you’ll have to get a bond if you intend to practice certain business, such as rendering a service to the public. Even though the bond might be set for a high amount, this isn’t the amount you have to pay. To obtain a license bond, you’ll need to pay a very small percentage of the total amount, depending on your credit score. A good credit score will result in a payment as small as one percent.
Certain Businesses Require License Bonds
As stated above, your business might require a license bond. These businesses include property services, public services, health or wellness services and many others. The purpose of these bonds is to protect the public against harm that may happen as a result of your business. In many ways, you benefit from these bonds just as much as the public. Operating your business without being fully bonded and insured as required by the law can result in legal action against you and even imprisonment.
How Does a License Bond Work?
Imagine hiring a contractor who demolishes your home or a paramedic who performs the wrong operation. What is your recourse?
It lies in these professionals being properly bonded and insured. If a business owner causes their clients harm, those clients can make a claim on their insurance. After the insurance company compensates you for damages, they will expect the business owner to make good on every penny spent in the transaction.
Bad Credit Doesn’t Matter
Even if negative events have impacted your credit in the past, it’s not impossible to obtain a license bond. Multiple factors are taken into account when considering your eligibility for a bond, including bankruptcy filings, past work experience, the status of previous bonds held as well as pending or past lawsuits.
In short, bad credit is just one small part of a much bigger picture. If you’ve been smart about your dealings in other parts of your life, a license bond is still very much within your reach.
Let us help you get there. Consult with Goldfarb Bonding Agency for the bonds that matter most for you
and your profession.
and your profession.