You’ve heard that when hiring a contractor or construction company, you should make sure they’re bonded and insured, but what does that mean? Bonding and insurance for contractors are there to protect you and your home when involved in a construction project.
The Ins and Outs of Insurance
Contractors are responsible for having two types of insurance: worker’s compensation and liability. Worker’s compensation ensures that if a worker is injured or killed while working on your home, their medical bills are covered and compensation for wages is provided, regardless of whose fault the accident might be. This protects you from costly lawsuits if anything should go wrong. Liability, on the other hand, insures your property should anything be damaged by the contractor. This does not include poor work quality, which falls under a bonding claim.
Bonded is Best
Both bonding and insurance for contractors protect your home. If a contractor is unable to complete the project, or if the completed work is far below expected standards a bond would ensure you receive appropriate compensation. Bonds are backed by surety companies, which offer a limited payout should a claim be made. Make sure you know the proper procedure for claiming a bond in your state, and find out how much compensation you can expect compared to the cost of the project before you start your project.
How Do You Know?
So how do you find out if a contractor is bonded and insured? Simply ask. Your contractor should be able to provide you with a policy number and certification for both their insurance and their bond. Make sure to keep copies of these for your records in case any problems should arise.
Always check for both bonding and insurance for contractors you hire to work on your home. Never hire a contractor who doesn’t have both, even if they’re less expensive, because it may prove more costly in the long run.