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No, I am not talking about Barry Bonds. I am sure that most of you have seen some business with the phrase licensed, bonded and insured on the side of their vehicles or even on their business cards. SO for those who do not know what that means I will help to spread a little bit of light on it for you. A contract bond is basically an insurance of their work. This means that a a bonding or surety company is guaranteeing the performance of their business as stated in the terms of their business license. So if they are a roofing company and they do an absolutely lousy job on your roof you can contact the surety company and inform them of your problem. They will then work with the contractor to get the roof up to par or will basically refund you your monies paid.

You see the contractor gives money to the surety company for his bond. This bond is then held against their work. This is a guarantee for you the customer. Believe it or not there are a large amount of jobs out there that actually require bonding. Not just construction companies but auto dealers and mortgage brokers as well. So know that when you are dealing with a bonded company you are in good hands.