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Posted April 30th, 2013 under Tip's to Finding the Right Moving Company

Should You Hire A Bonded Moving Company?

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Should You Hire A Bonded Moving Company?

Before you fall for slogans and catch phrases, you should understand what they mean. When you are looking for a professional moving company to help you get your belongings to your new home, you may see companies that claim they are insured and bonded. But what does that mean? Is it important that your moving company be bonded?

When you come across a moving company that claims to be bonded, it should be your first clue that the company may not know what it is talking about. If the company will exaggerate something like this to get your business, it should make you wonder what else they will say or do that is not completely accurate.

Bonds are forms of assurance. Is that important to know? Well, note that the term used was assurance and not insurance. There are several types of bonds and they are usually applied to the contracting business. In some states, it is a legal requirement that every bid a contractor submits for work be accompanied by a bond.

A performance bond is a form of assurance that a contractor will perform the full scope of a contract in accordance with the guidelines. If the contractor fails to perform the duties, then the job owner can collect on the bond.

A bid bond is similar to a performance bond in that it assures that the company who wins a bid will perform the scope of the work as outlined by the contract. The difference is that the bid bond must be submitted with the bid and the performance bond may be required after the contractor has won the bid.

An indemnity bond reimburses job owners and your vendors in case you do not perform the job and you do not pay your bills. Rather than vendors being stuck for the amount of money you owe them, they can cash in the indemnity bond and get paid.

Some states require contractors to carry a license bond at all times. There may also be other kinds of business that are required to carry a license bond. All forms of bond are purchased through assurance companies, except the license bond. A license bond is purchased directly from the state.

Some job owners require that contractors submit a payment bond which promises that you will pay all vendors and subcontractors associated with a project. If you try to skip out on paying your bills, then the subcontractors and vendors can go to the assurance company for compensation and not the job owner.

When you look at all of these different types of bonds, it is hard to find one that applies to the professional moving business. A bond does not reimburse a customer for belongings that are damaged or missing as the result of a move. Since you are not going to be hiring any vendors or subcontractors, it is unlikely you would ever need a bond in the first place.

Some moving companies will try to use certain terms to sound more official than they really are. The catch phrase "insured and bonded" can even be seen on the side of moving trucks as they move through your street. But the truth is that you do not need your moving company to be bonded. It is completely useless and, in most cases, the moving company is probably not bonded anyways.

You want a moving company that is going to tell you the truth and give you straight facts. When you are negotiating with a moving company, you want to make sure that the company is properly insured to handle your move. If the company representative insists that his company is bonded, then ask him what that means. If he tells you it means his company is insured, then find another moving company.

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