means a business has the required licenses, insurance, and bonds to operate legally and protect itself from financial losses. Licensed Having the required licenses and certifications to operate a business Meeting minimum requirements and having the right to conduct business in a state Bonded Having purchased a surety bond, which protects the third party that hires the business from losses Paying a fee to a surety company, who issues a bond promising to pay if the business fails to do the job Insured

Having transferred risks to a third party through an insurance product Having insurance to cover any accidents while performing work Being licensed, bonded, and insured helps ensure that a business is legitimate and protects it from financial losses. It also helps keep the public and workers safe. Businesses that are licensed, bonded, and insured tend to stay in business longer than those that aren’t.