What Does It Mean to Be Bonded?

Video Transcript

"Hello, I'm Roger Groh with Groh Asset Management. What does it mean to be bonded? We've all seen the signs on the sides of trucks, we're bonded. What does that really mean? Well in the end, it's an insurance policy for you where the effort of that company is guaranteed against problems and the nature of those problems can guarantee, can change depending upon exactly what is bonding. If it's a moving company they're bonding that they're going to deliver your stuff and it'll be intact and they have a third party who has guaranteed that for happening as an example. Another example might be a construction company that you've hired to build a new home for you or to rehab your current house. You want to really be sure that they're going to finish the project because you've paid them a lot of money upfront. Well a bonding company can guarantee that either that construction company will finish or if they fail to do that, another company will come in to do it. So I'm Roger Groh and bonded really means insured. Thank you for spending a few minutes with me."