This page is for franchise owners who've been asked whether they're "bonded and insured," often for a contractor license or a customer contract. Bonds and insurance do different jobs, and one doesn't replace the other.
The difference
- Insurance protects you. If your business causes an injury or damage, or gets sued, your policy pays the claim.
- A bond protects your customer or the state. It's a guarantee that you'll follow the rules of your license or finish the work you contracted for. If you don't, the bonding company pays the customer, and then you pay the bonding company back.
A bond doesn't cover your own losses and doesn't replace general liability or workers comp. Being bonded also doesn't mean your business has extra coverage or qualifications.
When you need a bond
Usually only when a license, permit or contract requires one. Common examples:
- License bonds, required by some states and cities for contractors and other licensed trades
- Janitorial or service bonds, which protect clients against theft by your employees
- Contract bonds, such as bid or performance bonds for larger jobs
Check your state or city licensing office for the exact bond and amount your license needs. Search for your trade plus "license requirements" and your state.
How to get a bond
Rikor works with ZipBonds for bonds. Use Rikor's link to reach the right portal:
https://zipconnect.zipbonds.com/agencySearchResults?agency=rikor
- Search for the bond type and your state.
- Apply online. Many license bonds can be bought on the spot.
- The ZipBonds team reaches out if they need more from you.
Need a bond capacity letter for a contract, or not sure which bond you need? Email support@rikor.io.
Related: Getting insured with Rikor ยท Where Rikor is licensed and who we work with