For those who’re in enterprise, you’ve most likely heard the phrases “licensed, bonded, and insured.” However what do they imply? And extra importantly, do you want them for your corporation?
On this weblog submit, we’ll cowl what every of those phrases means and what it takes to be licensed, bonded, and insured. We’ll additionally talk about once you would possibly want them and what they will do for your corporation.
What’s Bond Insurance coverage?
Bond insurance coverage is a kind of insurance coverage that protects companies towards monetary losses within the occasion that their staff commit fraud or theft. It additionally covers losses associated to errors and omissions. This kind of insurance coverage is necessary for companies that deal with cash or different priceless property, as it may shield them from expensive lawsuits or settlements.
Bond Insurance coverage is also referred to as:
– Employment Practices Legal responsibility Insurance coverage (EPLI)
– Bonded and Insured
– Enterprise License Insurance coverage
What Does Being “Licensed” Imply?
Being licensed implies that your corporation is permitted to function in a particular jurisdiction. This may be on the state or native stage, relying on the kind of license you want. To get a license, you’ll usually want to satisfy sure necessities, corresponding to having the suitable insurance coverage and bonding.
What Does Being “Bonded” Imply?
Bonding is a kind of insurance coverage that protects companies from monetary losses within the occasion that their staff commit fraud or theft. It additionally covers losses associated to errors and omissions. This kind of insurance coverage is necessary for companies that deal with cash or different priceless property, as it may shield them from expensive lawsuits or settlements.
What Does Being “Insured” Imply?
Insurance coverage protects companies from monetary losses within the occasion that one thing goes fallacious. There are a number of several types of insurance coverage, every of which covers totally different dangers. Companies ought to rigorously assess their wants and choose the kind of insurance coverage that’s greatest for them.
When Do You Want Insurance coverage?
Insurance coverage is necessary for all companies, no matter their measurement or risk level. There are a number of several types of insurance coverage, every of which covers totally different dangers. Companies ought to rigorously assess their wants and choose the kind of insurance coverage that’s greatest for them.
Many companies usually insure themselves towards:
– Property harm
– Theft
– Product legal responsibility
– Skilled legal responsibility
For those who’re unsure what sort of insurance coverage you want, contact an insurance coverage agent for assist. They will assess your threat stage and suggest one of the best protection for you.
Conclusion
Licensing, bonding, and insurance coverage are all necessary for companies. Every time period has a particular which means, and it’s necessary to grasp what each entails. For those who’re unsure whether or not you want any of these items, consult with an insurance or legal professional from Bethany Insurance coverage at this time.
