License Bonds

Written by Michael O'Brien
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License bonds are absolutely essential for a wide variety of business ventures and companies who have legal obligations to the public, or to their employees. The construction industry is one example where this type of license bonding is critical.

A Personal Experience

A friend of mine works for a company that requires license bonds. This is a construction related business that must adhere to strict permit codes and safety regulations. The benefits of being bonded became very apparent one fateful day.

My friend was in a bad accident on the job in which he fell almost 3 stories, breaking both his legs, his pelvis, and part of his spinal chord. The company he worked for had an excellent health plan, employing highly qualified surgeons to treat him. They have since offered physical therapy, and through them, paid a substantial worker's compensation stipend until he could come back to work.

License Bonds Made it Possible

The point of the story is that many companies who are required to have license bonds, like my friend's employer, are lifesavers. The bonding process guarantees a company will be responsible for certain matters. If they aren't, the surety company issuing the bond becomes responsible so that someone like my friend doesn't have to absorb the cost of putting his life back together himself. A company that fails to come through on such matters will have their bonds revoked, and must pay the surety company back with interest.

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