If you own commercial real estate, you’re used to employing service providers to keep your operation running smoothly. You probably know it’s a good thing to hire bonded service providers.
But what are the actual implications of being a bonded supplier? And what service providers need to be bonded? We have the answers below!
What Does Being Bonded Mean?
Bonds are specifically intended to protect you against theft. If a services provider’s employee steals from you (the customer), the bond will ensure you are compensated. While “bonded and insured” is a common phrasing, don’t confuse being bonded with being insured. Although it’s important to hire services that are insured, being bonded is something completely separate.
These types of bonds go by several names, including janitorial and home services bonds, as well as custodian bonds. However, they are not limited to just janitorial services. General contractors should be bonded, and so should temporary personnel agencies and companies with government contracts.
For the most part, services aren’t required by law to be bonded. A bonded supplier isn’t the same thing as a licensed supplier. Getting the bond takes time and money on the part of the business, but it’s an important step for any trustworthy service provider.
Why Being Bonded Matters
When you hire a company that isn’t bonded, you may get a company that’s inexperienced and untrustworthy. While they may charge you less, the quality of their work will probably be lower and you’ll be taking a big risk.
Exclusively choosing bonded suppliers is especially important if you have a lot of valuables on your property. Of course, in an ideal world, you wouldn’t have to worry about theft at all. But sometimes the unthinkable happens regardless of how careful you.
When you hire a service provider, it’s not your responsibility to babysit the employees. You have other things to do and sometimes you may be in a completely different city or state, especially if you own many commercial properties. Ensuring that the supplier is bonded gives you that extra peace of mind you need when you hire a company.
When you choose to hire a bonded and insured company, you’re protecting your business financially. But it’s more than that. You’re also creating a stronger reputation for your business. Just as being bonded improves the reputation of the supplier, working exclusively with bonded businesses will improve your reputation.
How to Hire a Bonded Company
Usually, a company will advertise that they are bonded on their website because of how important this is. However, you shouldn’t just take a company’s word for this. Although you’d like to believe them, they could be dishonest. The business should list the contact information of their bond issuer. If so, always follow up. Make sure that the bond complies with your county, city, and state laws and regulations.
Alternatively, you can go directly to your state insurance department’s website or the Surety and Fidelity Association of America’s website. You can find more information about bonds there and see if a janitor, contractor, or other business is bonded.
Improve Your CRE Operations with Bonded Suppliers and STRATAFOLIO
When you use bonded suppliers, you can protect your commercial real estate business and have a little extra peace of mind. Another way to improve your CRE operations is by using STRATAFOLIO. This online software automates processes and gives you valuable insights into your assets. Keep all your data in one place and keep your business running smoothly with STRATAFOLIO. Request a demo today!