Definition of

There are several types of "bonds" that an licensed electrician may purchase:
1 - THE BID BOND: A Bid Bond is issued as a portion of the bidding process by the electrician to the property owner. This type of bond assures and guarantees that should the bidder be successful, the licensed electrician will execute the contract and provide the required surety bonds. "Surety" in this case refers to the electrical contractor doing the work.

2 - THE PERFORMANCE BOND: A performance bond is issued by an insurance company or a bank and guarantees satisfactory completion of the project by the licensed electrician.

3 - PAYMENT BOND - A payment bond is what can guarantee the owner that the electrician will be paid any money that they are due from a "principal." So, if the electrician is hired by someone else, and then they do work on your property, the owner (you) can benefit from a payment bond because the licensed electrician and suppliers are guaranteed payment and will continue performance.

To sum up, if the electrician is "bonded," then there is a really good chance that the electrical project will be finished to your 100% satisfaction. The electrical contractors reputation, and license, are on the line,  they want to do a good job, and make sure you are happy.

One thing that most people don't know is that these bonding companies (usually insurance companies or banks) charge a significant fee to the electrician. Some of the smaller electrical service companies will likely try to charge this back to the customer, whether they know it or not.

The bond also guarantees the work of the licensed electrician for as long as that person is living. So, when hiring a bonded electrician, make sure you get the name of the bonding agent and details in case you need it for future reference or claims.

Also, the bonding company keeps a good record of service for the electrical contractors registered with them. It is always a good idea to check references through the bonding company, and see if there have been any complaints registered against the electrician.

The important thing to keep in mind when trying to chose between a bonded or not bonded electrical contractor is this: A non bonded electrician may always be able to do the same work as a bonded one. The bond guarantees the work under most circumstances, because it's an outside party providing the coverage. Ultimately it is up to you to determine  which option you go with. The one thing that is recommended under all circumstances, is to make sure the electrician you hire is licensed in that particular state, and knows all the electrical codes for the area. That, however, is covered under another article!