I can remember when I first went out on the job hunt. Sometimes on the applications it would ask if I was bonded. I put down "no" as I wasn't, but I was always curious about that having never heard of it before. I was wondering what being bonded had to do with working as a checkout clerk in a store. I was wondering if the company had just got a standard application and asking about being bonded was part of the application that they picked up at an office supply store, and it was something that wasn't applicable to the position.
Sometimes when a business advertises that they are licensed and bonded, that is because they want to get an edge over the competition, by guaranteeing their business and what they offer. Sometimes a business is required by the government to obtain a bond to comply with regulation. These businesses usually contract with bonding companies to obtain the bond. What it is is a guarantee of what they offer will fufill the requirements set forth, and should they fail to do so, the party requiring the bond can file for reimbursement. However, it is not insurance, and the company obtaining the bond would be responsible for any claims filed on it. Companies such as auto dealer bond, mortgage dealers, financial institutions, contractors, and others are ones that usually obtain these bonds.
