A contractor’s bond and insurance are important forms of protection for you, the consumer. They help ensure that you will be working with a reputable professional and will provide some recourse should something go wrong.

Contractor's insurance

There are two common types: liability insurance and workers' compensation.

Liability insurance covers such situations as contractor-caused damage to your property, although it doesn't typically pay for repairing or replacing shoddy work. That is the reason for the bond.

Workers' compensation provides payment to injured workers for lost wages and medical services, regardless of who was at fault. Workers’ compensation coverage will also provide benefits to the contractor's family in the event of a work-related death.

What is a contractor's bond?

Bonding protects the consumer if the contractor fails to complete a job, doesn’t pay for permits, or fails to meet other financial obligations, such as paying for supplies or subcontractors or covering damage that workers cause to your property.

Contractor licensing

Making sure you hire an appropriately licensed, insured and bonded contractor may seem like extra work, but it all adds up to helping ensure that you and your interests are protected, and gives you more assurance that you’re working with reliable, reputable professionals.