A low credit score with frequent missed payments, high debt-to-income ratio and involvements with a collection agency are red flags. The surety also looks at your work history, assets and liquidity when assessing the financial risk of issuing you a bond. A few blemishes on your credit history are not likely to be disqualifiers but you can expect to pay more for a bond.
Insurance agents must undergo a background check and fingerprinting. Qualifications for obtaining an insurance license and surety bond vary widely by jurisdiction. A criminal past is not necessarily a barrier to becoming an insurance agent depending on the totality of the circumstances and the laws of the state where you plan to work.
Information on state disqualifiers can be found on the Real Estate License Training website. Felony convictions for certain offenses are automatic disqualifiers in some states, but not all.
Florida will not issue bonds and licenses to applicants who were convicted of a first-degree felony. Other disqualifiers include conviction for financial crimes such as felony embezzlement, money laundering and the sale of unregistered securities.
Idaho looks at applicants on a case-by-case basis. A license signifies that you have the necessary training and meet the requirements needed to complete the job you are attempting to get hired to perform. Some examples of business people who may need to be licensed include medical professionals; attorneys; hairdressers, barbers, and cosmetologists; accountants; home improvement contractors; real estate agents; and handlers of food or alcoholic beverages.
Insurance: When a company is insured, it means the business is protected from financial losses related to events in the workplace. There are several types of business insurance that protect the business from a variety of risks, including property damage, lawsuit payouts, and lost income. Small business owners who are just getting started should discuss their insurance needs with a qualified insurance advisor before they start providing services to customers.
Bonding: While insurance offers protection for the company, bonding offers protection to a business's customer. If something goes wrong, the customer can file a claim against the company, and the bond purchased by the company will cover the cost of the claim, provided it is deemed to be valid. In its simplest terms, bonds are meant to protect consumers from harmful, unethical, or otherwise poor business practices.
There are two different kinds of bonds a business owner can purchase: fidelity bonds and surety bonds. A fidelity bond can be considered a supplement to business insurance because it provides protection for both the customer and the business from theft, misconduct, or fraud on the part of the company's employees.
If a company's employee is performing a service in a customer's home and steals something, a fidelity bond can be used to cover the cost of the employee's misconduct and the company is not held directly liable for the damages caused by the employee.
So while a fidelity bond is primarily protection for the customer, it also protects the business from errant behavior on the part of its employees. A surety bond, which can also be called a performance bond, provides the customer with a guaranteed assurance that the services will be provided as agreed. There are three parties involved in the purchase of surety bonds:.
Here is an example of how bonding works in the case of a surety bond: Let's say a construction company purchases a bond either because it is required by the state the business is operating in or as a guarantee of the quality of work they will perform for customers. The company is hired to build a deck for a customer, and during the course of the project, the company damages part of the siding on the customer's home.
Many jobs require that the employee be bondable in order to work at the place of employment. Being bondable means that you can be insured as an employee by the employer in case something happens to you on the job or something goes wrong on the jobsite. If you have a criminal record then in many cases you are not bondable or the price for bonding is much higher than a person who does not have a criminal record.
There are many jobs where bonding is important including forklift, heavy equipment operator, warehousing, construction, electrician and many other trades. Once the pardon or record suspension is granted then you can be bondable just like anyone else.
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