When hiring a contractor, it becomes hectic to many homeowners, commercial property owners or even representative of companies to choose the experienced contractor. There are various factors that one should look to certify a contractor for example if the contractor is experienced, insured and has a valid contractor license bond. These factors ensure that the owner is safe and secured from financial loss in case of any damage caused by the contractor. In this article, we shall learn more about the importance of choosing a contractor who is bonded and insured.
Insurance and bonding are almost same, and qualified contractors carry a variety of bond and insurances. Some of the bonds and insurances a contractor is expected to have are the performance bond, payment bond, and bid bond and liability insurances. Many people ignore these factors and later regret when it is too late. For you to be on the safe side, here are some of the importance of choosing a contractor who is bonded and insured.
• Insurances help in payment of any damage caused by the contractor.
For example, if the contractor is repairing your roof and accidentally destroys neighbors’ car, liability insurance will help in the payment of that damage. Your neighbor will come after you but with the presence of liability insurance, you will be able to handle the damage without incurring an extra cost from your pocket. It is, therefore, important to make sure the insurance is updated.
• Bonding assures the owner that the job will be completed with the estimated cost.
For example, bid bond ensures that once the contractor turns their estimation value, they must complete the work with the price offered and failure to that, the bonding company has to pay another contractor to finish the work.
• Both bonding and insurance help in payment claims.
Payment is equivalent to the cost of the project and of the main contractor is paid and fails to complete the job, the subcontractors will not claim for payment since they should be paid by the bonding and insuring company.
• Performance bond assures the owner that the job will be completed in the stipulated time.
If the contractor seems not to complete the work at the expected time, the owner has the right to claim, and the company obliged to pay another contractor to get the job done.
It is imperative to verify the above documents since in the case of anything you will bear the responsibility not just the contractor with the best marketing. In addition to that, it is always good to ask for a reference from friends before choosing any contractor. Alternatively, you can search for sites on the internet to see the companies with contractors who offers best services.