What is the difference between being "bonded" and being "insured"?

Question

What is the difference between being "bonded" and being "insured"?

Answer 1

Being insured, means an insurance company has issued a "policy" protecting you against certain things happening.  Generally, it includes coverage againt a lawsuit brought by ANYONE.

Being bonded, means an insurance company has offered a guarantee, to a specific third party and only that specified third party, that you will or will not do something, and if you fail to do what you're supposed to do, the insurance company pays them a pre-set amount.

I've explained it here before many times - just do a search for in YA for BOND.