How to Get Bonded for a Tree Service

When cutting trees, it is important that your business is protected in case the unfortunate happens. When you are bonded, both you and your customer have the coverage that you need. The bonding process can take some time, but is necessary for the overall stability of your company.

Step 1: Find a company in your area that will issue surety bonds. You can search MerchantCircle to find a company. Simply type "surety bond" and your ZIP code in the search boxes to find the appropriate information. You can also talk to your insurance agent for advice.

Step 2: Decide what type of bonding that your company requires. There are several different types, including payment or performance bonds. Check applicable state and local laws. Some locations may require you to have specific types of bonds before your company can operate. Operating your company without the proper bonding could bring criminal or civil action against your company.

Step 3: Provide your bond company with the paperwork that they require. It is possible that they will want to see your company's latest financial sheet. Also, be prepared to provide information so that they can view your credit report. 

Step 4: Await the approval of the bond company. Do not begin any projects during this time. You will not be covered if you start a project during the approval period.

Step 5: Once you have been approved, pay the premium that is required to enact the policy. Keep all of your bond records in a safe place.