Does your home business need to be bonded? I can’t give you a professional opinion - for that check your attorney and your insurance professional. I DO know that many times, your CUSTOMER will want you to be bonded whether you technically NEED to be or NOT, especially if you find yourself bidding on corporate or government contracts.
A business bond is a form of surety, a financial guarantee that your work will be accomplished as promised and there are a variety of surety bonds that may be required for your business.
You can find the most common types of surety bonds here:
Many of our readers run home based mortgage businesses or debt collection firms and each of these may require their own type of commercial bond.
There are “Broker Bonds” which cover mortgage brokers. If you’re the actual BROKER, you will need a bond that relates to the potential liabilities you face for failing to perform your duties. If you’re the employee of such a broker (most home based reps are employees) you should ensure the actual broker has the appropriate bonding.
Some people buy and sell used autos on a lot next to their home where I live. I guess you’d call that home based. They may be required by the state to have an Auto Dealer Bond.
So, depending on your
1. Type of Business
2. State law
3. Customer Requirements
4. Financial self defense
Yes, your home business may indeed need to be bonded.
Thanks to Jwsuretybonds.com for suggesting and sponsoring this post.
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