What does bonded mean? As in being lisenced and bonded?

Question

What does bonded mean? As in being lisenced and bonded?

Answer 1

Bonded means you have had your credit and work history investigated and found to have no fraud, financial embezzlement, or crime in your background.  Generally the company you work for has insured you against any mistakes you might make at the job such as simple human error while serving the duties you are delegated to do.  The company will be covered financially against law suits or financial loss committed by you in a crime.

You will generally have to fill out a questionaire from the bonding company asking about your personal and business history.  Then the investigation begins.  Not everybody is bondable, especially if you have committed severe crimes or publically published crimes.

Answer 2

It means, that there is a bond in place.  A bond is a guarantee from the insurance company, to one specific party, that you will or will not do something, and the penalty amount is pre-determined.

It doesn't transfer from one person to another, and it doesn't "cover" you like insurance.

Answer 3

It's generally referring to a surety bond which makes you liable to complete an obligation at the risk of losing your bond if you fail to complete it. Usually used in a construction or subcontractor setting to protect a third party like a landlord.