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Licensing & Bonding Delivery ServiceQuite often, the terms bonded and insured are very misunderstood. Both involve coverage in case of loss or exposure to risk. Bonding usually refers to a type of surety guarantee that a specific project, service or act will be financially covered if performance is not complete or satisfactory. Insurance on the other hand usually refers to a specific amount of financial coverage for risk to a tangible item, such as car, building or goods that have been shipped. Delivery is a service that requires both bonding and insurance. You will need to secure a bond from a bonding company, assuring that if you fail to deliver a package or if a package is damaged, the bonding company will reimburse your customer for the financial loss. Insurance companies or insurance agencies are both companies that provide bonds. Some specialize in bonding, however, that does not mean that you will receive better pricing or that they have more experience. Before becoming bonded, make sure you talk with your insurance agent or consultant regarding any potential overlaps in protection. You do not need to become bonded if you're already adequately covered by insurance. You may be able to cut costs by reducing insurance coverage and becoming bonded. Make sure you research your options and talk to the appropriate professionals. You will need to contact your local and state governments regarding any licensing requirements that are necessary. Usually general licenses are required to operate a business at the town/city level. Specialized licensing is typically granted by the state.
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Q: How does one become licensed and bonded for a local delivery service business?
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