Before you hire a contractor make sure they are licensed, bonded and insured!

So you need that job done at home, whether it is plumbing or that odd electrical job you still need to get a contractor to handle the job for you. Well, obviously it is important to get the correct contractor for the job but also very important to make sure they do carry a license and insurance is a very important aspect. So in this article, we will be talking about licensing bonding and insurance of contractors.

Let’s have a look at the following:

• Licensing
• Bonded contractors
• Insurance

Licensing

Why should you check if a contractor is licensed? The license is very important because that will tell you that the contractor you hire has undergone the necessary tests for the trades and that they do qualify to do the job you require. Basically, a license means that the contractor has the minimum requirements for the specific trades they are in. So with that being said, it is always best to make sure that the contractor you to hire for the job can show you a license.

Bonded contractors

What is bonded you might ask? Contractors are required to be bonded so they can get a license. This means the contractor needs to buy a surety bond. It serves as insurance to the customer if the contractor fails to do the job properly or fails to pay for permits or other subcontractors for that matter.

Many homeowners don’t realize that a contract is bond can protect them against any damage to the property because of contractor negligence or even stolen property by employees of the contractor.  Here is how they can benefit you.

The home owner is not the only one who benefits from the bond but the contractor as well. Most people don’t hire a contractor who does not offer the protection of a bond. A lot of suppliers or even subcontractors would normally refuse to work with a contractor who does not have a bond in place.

Insurance

Let’s have a look at why a contractor needs to be insured.

Contractors normally need to be able to show proof of insurance to able to get a trade license.

Insurance is normally divided into two types.

• Liability
• Workers’ compensation

Liability

This normal coverage property damage and or any injuries caused by the contractor’s work.

Workers’ compensation

This normally gives payment to injured workers, no matter who was at fault in the accident, all ages all Hospital costs that is not covered by the contractor.

So always make sure that the contractor you hire is licensed, bonded and insured.