That’s not what bonded means.Learning a lot doing this. So is my broker.
Basically, it is a requirement so that I can be sued (it provides a $25k bond) and serves as, well, "Ben isn't a dick and his company is legit" 😂
Need five character references that aren't related, I have at least ten. Going down the list of my favs right now. Plus a witness for one DMV document.
So, when you see "Bonded & Insured", that's this.
It’s literally money set aside to cover any minor lawsuits that may come against you, and as all small businesses find out: they get sued often for frivolous reasons.
It doesn’t mean it’s an advertisement to say you’re a legitimate business. The state requires it so as not to overload the court system with frivolous lawsuits.
And the references are for the same reason creditors ask for them: so they have names of people to contact when they need to track you down for not paying your bills (or lawsuit settlements).