Being bonded means that a bonding company has reserved funds that a client can claim if the business doesn't fulfill its obligations. This gives clients some security, knowing they can recover losses if the business doesn't fulfill its obligations. For contractors and business owners, it's important to understand what it means to be surety bonded and how it affects both their business and their clients.
While bonding protects the client, insurance provides coverage for the business itself against unexpected events. It provides protection against unexpected losses, such as property damage or liability claims. Simply put, being bonded protects the client, while being insured protects the business.