What does it mean to be Licensed Bonded Insured?
Being Licensed, Bonded & Insured
Being licensed, bonded and insured is the Holy Grail of confidence in your company. When you are able to get all three – licensed bonded insured – then you are able to go out and get any job that you are qualified to perform. There are not any limits on to which jobs are available to your company.
The first step is being licensed. In most cases, this is the initial barrier to entry. It takes a license to actually go out and perform the work. The license is not anything special and it is the basic building block to the business. However, lacking a license will stop your company from actually performing the work. So, unfortunately, you have to obtain the license first.
The second step is to be bonded. We can certainly help with this. We work with our companies to get them a bond and to increase the bonded limit. This will open the doors to your company being able to bid on a variety of jobs. In many cases, these bonded jobs have a bit higher margins. The higher margins are due to the basics of supply and demand. The supply of qualified bonded contractors are lower than jobs that do not require a bond. So, you can bid with a bit more certainty in the bid spread. Further, being bonded will be a strong signal to the market that your company is financially stable.
Finally, being insured is important to show that you can cover losses through a good insurance provider. This will help your potential partners and customers to have some assurance that a mistake will not cause undue finanical hardship to your company.