When hiring a contractor, it`s important to consider whether they are bonded and insured. But what exactly does this mean?
Being bonded means the contractor has purchased a surety bond. This is a type of insurance that protects the customer from financial loss if the contractor fails to complete the job or fails to meet their contractual obligations. For example, if the contractor fails to finish the project or causes damage to your property, you can file a claim against the bond and receive compensation up to the amount of the bond.
Being insured means the contractor has purchased liability insurance. This type of insurance protects the customer from financial loss if the contractor causes damage to the property or injures someone while working on the project. For example, if the contractor accidentally damages your neighbor`s property or a worker is injured on the job, the insurance company will cover the costs associated with the damage or injury.
So why is it important to hire a bonded and insured contractor? For one, it provides peace of mind knowing that you are protected in the event of a problem. Additionally, hiring a bonded and insured contractor shows that they are professional and serious about their work. It`s a sign that they have taken steps to protect themselves and their customers.
When hiring a contractor, it`s important to ask for proof of their bond and insurance. A reputable contractor will be happy to provide this information. It`s also a good idea to check the expiration dates of their bond and insurance policies to ensure they are current.
In conclusion, being bonded and insured is an important factor to consider when hiring a contractor. It provides protection for both the customer and the contractor, and shows that the contractor takes their work seriously. Always ask for proof of bond and insurance, and make sure to check for current policies.
