How to Become Bonded
If you are looking to become bonded to help cover any financial risk or loss of your business, luckily it is a fairly simple process. The majority of companies that provide bonds are insurance companies or agencies with some having a specialty in bonding, but you still want to check around to get the best policy for your business. The steps below will help you become bonded if you aren't already covered by insurance.
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Things You'll Need
- Phone
- Paper
- Bond application
- Personal and business financial statements
Instructions
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Contact local and other insurance companies and agencies to see what they might be able to offer you in the way of becoming bonded. Be sure to keep a list of each place you contact as well as the information you find out so that you can compare each one to find out which is best for you. Once you find a company you will have to fill out an application, but these steps help you make sure you have everything you will need for that bond application.
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Have your personal information available. This of course is required when filling out any application. If you are married you will also need your spouse's personal information, such as birthday and social security number. Your business name and address need to be on the application as well.
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Know your obligee's information. A bond application requires you to specify the entity, which will normally be the state or local government, that requires you to have the bond. You need to know the name and address of this obligee, the type of bond you need and the amount of the specified bond.
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Have all your financial information ready. You will need your own personal financial statement, which you will find a link below to help you make one if you don't already have one. You will also need a financial statement for your business. You can create one of these online as well if needed. You can have a CPA help you create one but software-produced statements will work just as well.
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Be aware of your credit. The bond amount you will be approved for will depend on your credit. If you need to clean your credit up, you might focus on doing so before submitting a bond application to help you get the amount you need. Otherwise you just want to make sure all the information on the credit report is correct and fix anything that is not.
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Be prepared to supply additional information. Sometimes applicants are required to supply additional information in order for their bond application to be processed. If this happens to you, don't worry because it doesn't mean there is something wrong.
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