You have probably seen the qualifier “bondable.” If you’ve ever filled out a job application, you have probably seen the qualifier “bondable.” It cannot be evident if you aren’t sure what it means. Some might wonder if it refers to bonds like stocks or other financial investments. Others may not know whether this is a requirement for the job or just an optional credential.
What Does the Word Bondable Mean?
Bondable or bonding is an insurance policy that protects the employer from losing equipment. It can also cover other potential losses, such as theft and damage. Bonding is required for specific jobs, such as construction workers who use power tools or drivers transporting goods.
Bonding is a risk-management tool companies use to protect against financial losses resulting from employee misconduct, errors, or omissions. A bondable employee can obtain a surety bond through a bonding company. A surety bond promises compensation to the company in the event of an actual or perceived loss due to the employee’s misconduct or errors.
Companies and individuals must qualify for that loan to take out a loan. This is done by determining the amount of interest on a loan the applicant can afford. The people making this determination are bond underwriters or bond rating experts. Bond underwriters can determine whether an individual or company qualifies for a loan, which means they are responsible for investing capital in securities offered to investors. Your net worth and your history of poor financial management determine your bondability. It is unwise to overpay or not pay taxes as that information stays on your credit report for seven years, and the IRS does not care if you’ve been nice about it.
How do you qualify to be bonded?
To be qualified to be bonded in a company’s hiring process, you must have a clean criminal record, good credit score, and lack moral turpitude. A clean criminal record means you have never been convicted of a crime or charged with one.
However, you will not automatically be disqualified if you have poor credit scores due to tax liens, foreclosures, and other adverse reporting. Usually, surety companies will work with you and offer you a bonding program for individuals with bad credit.
The bonding process begins when you apply for a job with your current employer and fill out an application form. The form states that you are not bonded now but may be eligible for bonding if you meet all requirements. The application will then be sent to the company’s risk management department, which decides whether or not you qualify for bonding based on your credit history and employment record. If approved, they will send you a letter of acceptance stating this fact and instructions on the steps to take before receiving your bond certificate.
These steps may include paying an initial premium on top of your monthly premiums (if applicable) to establish creditworthiness within their eyesight, which is critical since they want someone who pays their bills on time rather than someone who doesn’t have any money coming into their account every month (which could cause problems down the road).
Also, to be qualified to be bonded in a company’s hiring process, you must have a strong work history and excellent communication skills.
To have a strong work history, you must have at least five years of experience in your field and have worked with several companies. You should also have some certification or degree related to your area of expertise, such as computer science or engineering.
To demonstrate excellent communication skills, you should be able to clearly articulate your thoughts on any given topic and speak with authority on any subject matter. You should also be able to listen carefully and respond appropriately when someone else is saying, which is essential for anyone working closely with others throughout their career.
A person who demonstrates both qualities will likely succeed at any job where they are required to interact with others regularly—especially one that involves working closely with customers or clients!
To be bonded, what further background checks are required?
It would help if you underwent background checks to be bonded, including fingerprinting and criminal history checks. You’ll also have to provide detailed information about your financial history, including bankruptcy filings or foreclosures.
Background checks are essential to qualify for bonding because they ensure that the applicant is reliable.
Background checks can help screen employees, contractors, and business partners to determine whether they suit your needs. A background check can help you identify potential risks associated with an employee or contractor and ensure that the person has the necessary skills or experience. Background checks also help protect your company from legal liability if it hires someone who later commits a crime or causes damage at work.
A third party, such as an investigative agency, may conduct a background check. The agency will collect information about an applicant’s criminal history, employment history and references, education credentials, and other personal information. The results of this investigation may be used to determine whether an applicant should be hired or bonded by your company.
In short, to be considered for bonding, an individual must have no convictions for violent crimes or criminal activity. If an applicant has been convicted of robbery, assault, or any other crime that could threaten society, they will not qualify for bonding. If a person does not meet this requirement, working and getting back on their feet can be challenging.
Conclusion
All in all, it’s fair to say that bondable employees are a vital asset to a company. You need workers who can be put into positions of trust, and you need workers you can trust to get the job done. The best part is that they don’t have to work full-time—they’re also available for seasonal and part-time jobs.
After leaving Wells Fargo Bank in 2014, Daniel began a career as a finance consultant, advising companies and individuals on economic policy, labor relations, and financial management.
At Promtfinance.com, Daniel writes about personal finance topics, value estimation, budgeting strategies, retirement planning, and portfolio diversification.
Read more on Daniel Smith's biography page.
Contact Daniel: daniel@promtfinance.com