What is bonding?

A common question that people have, particularly those who are starting their own business, is, “How do I get bonded?

It’s important to understand a few things. First, what is bonding, actually? Bonding is simply a scenario where one entity insures that the obligations of another entity are met, and provides compensation to a third entity when those obligations are not met. But to truly understand how to get bonded, we need to look at a specific business case to provide some insight.

Let’s say you want to start a automobile dealership business in Florida. In order to be a car dealer, Florida, like most states, requires you to obtain a Florida Car Dealer License. But is doesn’t stop there. Florida requires a car dealer bond also. But Florida is not alone. Many states, such as California, Georgia, Ohio, South Carolina, and others also require car dealers to get bonded. The key is to check with your particular state regarding bonding requirements. If you need more information about your specific situation, we are very eager to help! Please contact us for a free surety bond consultation today.