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Can anybody explain what bonding is as far as insurance coverage goes? I had a caller ask about insurance which I said I carry as required by the PA Home Inspection Law (both E&O and GL). He then asked if I was bonded. I can't say I know what the difference is.
Anybody?
Being bonded is in laymans terms, the ability to repay a judgement, in case you lose a lawsuit. In Washington state, a person may either set aside a certain amt. of cash in a bank(untouchable acct.) or may pay an insurance company a fee. But in Wa if you lose a judgement, and your bonding company pays for it, you must pay them back. Similiar to bonding out of jail. Hope this helps.Quote:
Originally Posted by Nick Ostrowski
Nick, Google "surety bond" and you will get the idea.
When I was a licensed general contractor in CA, I was required to get one.
Thanks guys. Makes sense now. I can't say this is something I'd ever consider getting since I'm already required by PA to carry E&O and GL which is enough of recurring business expense as it is.
Fidelity bonds and surety bonds are very different animals. InterNACHI provides a $10,000.00 fidelity bond for each of its 32,000 members, at no cost.
There are MANY types of bonds out there. Fidelity bonds cover the business for fradulent acts by employees (theft, etc.). Crime bonds cover you if you steal property out of a customers home. Most bonds, if used, have to be paid back. In my opinion, bonds are really just a marketing tool for you and should not be used.
LOL! That has to be the funniest post I've read all year.Quote:
In my opinion, bonds are really just a marketing tool for you and should not be used.
Lisa educate us, everyone I know who has a bond in any business use for advertizing, It gives the customer confidence. And personally I would definately never want to have my bonding company to cover my A$$. I would like to know the reason for your statement. thanks in advance
She stated that your reasoning that something "should not be used" is because it is "just a marketing tool."
Hilarious.
Oh, you were serious?
Look again that wasnt my postQuote:
Originally Posted by Lisa Endza
My bad. I was cleaning up the coffee I spilled all over my dress when I started giggling uncontrollably.
I'm posting that one over on our message board. Our guys will get a kick out of it too.
Wow you are the director of communications for internachi, yet a person asks a polite question and you sit there and make fun of them. You are not a good representative of your organization. I politely asked for you to educate us. Many, many inspectors advertise their bond, as well as general contractors. I wanted to know why we shouldnt. I even thanked you in advance.Quote:
Originally Posted by Lisa Endza
I think I "communicated" how ridiculous it is to pooh pooh something, because it is a marketing tool, quite well.
What our inspection industry needs in this economic environment is for inspectors to ban together and ridicule anyone who voices the harmful notion that there is something wrong with marketing. If we keep it up, they'll eventually go away.
I'm pretty sure she was joking anyway. She couldn't be serious about not using something because it is a marketing tool.
So you either can not or will not answer the initial question, why shouldnt a person use bonding in advertisement. I never said anything against marketing, I guess that is what your saying when you say "pooh pooh" .
This board is here to help inspectors learn by asking questions. I hope that banding together and ridiculing someone who asks a legitimate question is not the goal of this board. If so you wont have to force me off, I will leave voluntarily. I also thought this board was for proffesionals, with proffesional attitudes.
I think there is some misunderstanding as to what I said. When I said it should not be used, it was in reference to calling in the bond. Use the bond as marketing such as "Bonded and Insured," but don't call it in to the insurance company because you will probably have to pay it back. For a $5,000 bond, you pay $100.00 a year and it gives your customers some peace of mind while you are in their home.
NickQuote:
Originally Posted by Nick Ostrowski
I carry what is known as an honesty bond. It covers one against some fool accusing you of theft from their home and such. As far as any other type of bond as a home inspector I just don't see it especially when you already have E&O and GL. You are covered if you ladder falls on the clients car or sellers car or kid. E&O will cover you , well you know what for.
I now see the confusion, I saw how she meant it and I can understand how you saw the statement but I still feel your responses were very un- proffesional.
The trouble with message boards is that it is difficult to express inflection. Don't take me too seriously.
And don't use any marketing tools. ;)
truce:D
As far as I could find out, bonding only applies to employees of a company. If you're a corporate entity and pay yourself as an employee of the corporation, then you can be bonded. Otherwise, it's a "Not Applicable". Skip people who seem to be more concerned about insurance and and such things as bonding than the inspection. I suddenly find myself booked for the next 6 months;Quote:
Originally Posted by Nick Ostrowski
I don't get what is so humorous about a bond being deemed a "marketing tool?" That is absolutely 100% correct... I don't think I have ever seen 1 claim against a bond that we have sold to an inspector.
They are dirt cheap (free apparently in some cases) because there is minimal liability. So it serves the purpose if giving an inspector, and his/her clients, peace of mind in saying "I'm insured AND bonded..."
BTW... offering a free bond is a "marketing tool" of sorts, no?