In many areas of service and business, we’ve all heard how important it is to hire a company that is reputable, well known and experienced. But what does it mean when a company is (or is not) bonded and insured?

In the home care industry, you should only do business with those companies that are fully licensed, bonded and insured. Why is it important in home caregiving that you hire only such a company?

What does ‘bonded’ mean? A company is bonded when it has secured funds (controlled by a state agency) to be available for potential consumer claims against the company.

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. An insured company is one that is covered in case of accident or other risk exposures during the course of providing its services.

Bonded and insured protects everyone. The service provider, in our case a home caregiving company, makes payments to a surety company for protection by a bond, and then pays insurance premiums for insurance coverage. The bond and the insurance company are responsible for covering certain areas, such as certain types of financial loss that may include work done improperly, damage or theft. Businesses that are bonded also do background checks on their in-home employees, so you know that anyone coming into your or your loved one’s home has been properly vetted.