Being "Bonded" means an insurance company has guaranteed to performance of a company or certain employees at that company. It is wise to ask to see their bonding statement showing what is covered.
Some examples are a Business Manager or CPA who is bonded. If they run away to Brazil with your money, the Bonding company must make good on your losses. If a building contractor takes your money but does not finish replacing your roof or does not pay the subcontractors who worked on your job, the bonding company will pay to have this done.
Bonding is quite different from insurance. Liability insurance protects the Business Manager, CPA, or building contractor when you sue them. The insurance pays all or part of the judgment awarded to you. They also pay for lawyers to defend against your lawsuit. Clearly from your standpoint, a company that is insured is not at all like one that is bonded.
Only YOUR insurance protects you from the Business Manager, CPA, or building contractor when they, or their employees, are injured by you or on your property and they sue you.
Many people like myself also have a multi-million dollar "Umbrella Policy". This extends the coverage under your Auto and Homeowners or Renters insurance to the limit of your Umbrella Policy. Many people have $350,000 coverage or less if they are in an auto accident and injure someone. The Umbrella Policy raises this from $350k to $3 million or what ever you purchase.
If you were in an auto accident and paralyzed someone, they would sue you for something, let's say $2 million. Your insurance company will initially pay for an attorney, but when they are offered the opportunity to settle for $1 million, they will pay the $350k they are liable for and leave the rest to you. You can either pay the $650k you owe or hire your own attorney, out of your own pocket, to continue the fight.
If you don't have $650 in cash they will attach your bank accounts, place a lien on your home and car as well as any other assets you may own and attach your salary or business revenue. If only you could only go back in time and purchase an umbrella policy, your insurance company would have been on the hook for up to $3 million, so they would have fought the $1 settlement offer to the bitter end or have paid the full $1 million.
If yoh have no assets and little income, you probably don't have insurance and simply file for bankruptcy when you are sued. If you have significant assets or income and don't have insurance with an Umbrella Policy, you are a fool.
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