The phrase describes a professional or business entity that has obtained the necessary authorization to operate legally within a specific jurisdiction and has secured a surety bond. This bond provides financial protection to clients or customers in the event the entity fails to fulfill its contractual obligations or engages in unethical or illegal practices. As an illustration, a contractor may be required to be both authorized to perform construction work and have a financial guarantee in place to protect homeowners from potential damages due to faulty workmanship or project abandonment.
This combination of authorization and financial security offers significant advantages. It fosters trust and confidence between service providers and consumers, mitigating risks associated with fraud, negligence, or incompetence. Furthermore, it establishes a framework for accountability, ensuring that individuals or companies are held responsible for their actions. Historically, these requirements have evolved to safeguard public interests and promote ethical business conduct across various industries.
