I know I need insurance, but I do need to be bonded as well?

Question

I'm starting a quiet zone consulting firm out of my home. Consisting of myself (the professional) and my daughter (the secretary, partner, and assistant). Do i need to be bonded? Since a majority of my clients would not be visiting my home office. As i will need to travel to them, to inspect the quiet zone in question.

Answer 1

General liability policies will protect your client's property if you and/or an employee of yours damage anything while performing a service.  Workers Comp protects a portion of your employee's salary, and yours if you chose to be covered, in the event you have an accident on the job.  Bonding protects your company against any liability for an employee's theft of a client's property.  Best ask a property and casualty insurance agent for companies like Nationwide, The Hartford, Travelers, etc.

Answer 2

I think you already know that you will need General Liability insurance. Professional liability insurance? maybe. Perhaps worker's compensation insurance depending upon the workers compensation laws in your State.

The bonding that you are likely referring to is called a Business Services Bond. This bond provides protection against financial liability for the loss of a customer's money, securities, and personal property caused by dishonest acts of the employees of the insured while on the customer's premises.

The bond is more of a marketing tool than actual coverage. Why? Because the bond only pays your customer upon conviction of the wrongdoer (your employee).

Even though the bond rarely pays a claim small businesses still  purchase the coverage because it is not expensive and so they can advertise to their customers that "We are bonded and insured". It's got a nice ring to it.

Answer 3

Bonding has NOTHING to do with your home office.  Most of the time, the only time you NEED to be bonded, is if a client requires it, or if a governmental entity requires it.

Bonding likely doesn't mean what you think it means.  Discuss this with your agent - including what TYPE of bond you think you need.