Glossary term
What is Bonding?
Short answer
Bonding is a guarantee from a third party that a contractor will finish a job or follow the rules, backed by money if they do not.
Bonding, explained for tree service owners
Some cities and bigger customers ask a tree company to be bonded. A bond is not the same as insurance. Insurance protects against accidents. A bond protects the customer if the contractor fails to do the work or break a rule. If a claim is paid, the contractor usually must pay the bond company back. Small residential jobs rarely need one, but some public bids and licenses do. This is a short explanation, not legal advice. Check your city and state rules before you bid.
Related terms
- Net 30
Net 30 means the customer has 30 days after the invoice date to pay in full.
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