The Importance of Hiring Licensed, Bonded, & Insured Contractors
Updated: Feb 28, 2019
What does it mean for a contractor to be licensed, bonded, and insured? Why should this matter to you? We'll describe what it means to be bonded and insured, why it's important to always hire licensed contractors and how you can check to see if they are licensed in your state.
What does it Mean to be Licensed, Bonded, & Insured?
Did you know contractors cannot receive their professional license until they are bonded and insured? This means they have to be so serious about their business that they choose to pay for insurance before they are even licensed to do begin working. The bond and insurance serve as a protection for clients when a mistake or problem arises from the project in question. Once a contractor is bonded and insured, they can submit for their professional license. Once the professional license has been accepted contractors can begin doing business.
Why is it Important to Hire Licensed, Bonded, and Insured Contractors?
When you hire a contractor who is licensed, you are protecting your home from damages and can sleep soundly knowing they have the knowledge to get the job done right. Licensed contractors have put in the time and effort to learn their craft well and understand what needs to be done in order to successfully complete a job, this includes acquiring the proper permits through state and local governments.
Let's say you have a guest visiting during your construction project and they get injured on an unfinished floor. Without a licensed contractor, you could be footing the bill for that injured guest. Another possible scenario is if an unlicensed worker causes damage to your home or occupants, you could be held liable. These are some of the main reasons you should always hire a licensed contractor to work on your home or office. Licensed professional contractors will have the tools to do the job right, and liability covered if damages ever occur.
If you are curious about whether your current or future contractor is licensed, bonded, and insured, go over to your state's website and search for the business name under professional licensing; or search for a business license with the company name. If you cannot find their business license or professional license and you have reason to believe they are not licensed, do not do business with them! Licensed contractors will be happy to provide proof of insurance if you ask them,