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FAQ / How does an individual or business get bonded?


Bonds are issued by a qualified surety or insurance company authorized to execute such bonds in your state. A bond is a guarantee insuring that a product or service is made or that specific rules are followed. Failure to meet the stipulation may result in forfeiture of the bond and/or license and will allow the third party to recover its losses via the bond. Some licenses require the person or business to be bonded. E.g., the U.S. Small Business Administration sponsors the Surety Bond Guarantee Program for contractors.


 




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