What's the difference between insurance and bonds?

While being bonded and insured are both forms of a financial guarantee, they aren't the same. Insurance serves your business and protects your assets from legal fees and other unexpected costs. Surety bonds, on the other hand, serve your clients by acting as a guarantee that your company will fulfill the terms of a contract.

Insurance claims are paid directly to your own business. However, in the event of a surety bond claim, the surety company reimburses the client for their financial loss, and then your business must pay that amount back to the surety company. This all protects the customer from damages, injuries, and gets the job completed without any loss.
 

What is Liability Insurance and Why is it Important?

Liability insurance is an essential coverage for small business owners. It helps protect you from claims that your business caused bodily injury and property damage. The importance of liability insurance is that every business faces claims that can come up during normal operations. Without coverage, you’d have to pay out of pocket to cover claims, which can put your business at financial risk.

Why should I use a Licensed Electrician?

It may seem like this is simple, that all contractors know how the process is done, but sadly there are some who do not do this. Because you are getting the services of a professional, you can be assured that they will plan out the process carefully and will communicate with you until your home renovation is done.

With a licensed contractor, you can breathe easier when the city inspects your home, knowing that they have complied with safety and other regulations. This will also be helpful if, in the near future, you are planning to sell your home. Potential buyers will, of course, ask for the necessary permits and if you did not get a licensed and bonded contractor, you will not have anything to give them.

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What does this all mean to hire a business that is Licensed, Bonded, Insured?

Getting a licensed and bonded contractor gives you insurance!

This means that should any damage happen during the renovation or construction, you are assured that your contractor will take the responsibility for it. That is a big relief for you, especially if you have set a specific budget for your project and you have no extra cash should anything untoward happen. And that responsibility is not just for damage to your house, but also for any injury that might occur during construction. For example, a visitor to your house gets an injury at the construction site, because you hired a licensed and bonded contractor, they will be the one to pay the hospital fees so you don’t need to worry about spending money.

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