Q: Is a temporary refundable surety tax insurance policy legit?
I own a cleaning business and a contractor wants me to do some work but before the give me access to properties they said I had to pay for the temporary refundable surety tax insurance. They said they wouldn't accept the business insurance I have
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A:
It’s wise to approach this situation with caution. Temporary refundable surety tax insurance isn’t a common requirement in standard business practices. Legitimate contractors typically rely on standard insurance policies to ensure coverage and compliance.
Paying for an unfamiliar insurance policy before gaining access to properties can be risky. Scammers often create convincing scenarios to extract money from businesses. It’s important to verify the contractor’s legitimacy and the necessity of this specific insurance.
Reach out to your current insurance provider to discuss the request and confirm if such a policy is standard in your industry. Additionally, consider consulting with a local business bureau or legal advisor to ensure you’re making a safe decision. Protecting your business from potential fraud is essential.
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