Contractor’s insurance and bonding
When hiring a contractor or service person one question you should ask is whether they are insured or bonded. Insurance can cover many situations that occur when work is being performed. Each state has different requirements for the type and amount of insurance that a contractor should have.
n
n
There are two basic types of insurance that a contractor should have. Property damage insurance is necessary to cover any damages that could occur to your home during the project. Liability insurance should be available cover any personal injuries to anyone in your home. Worker’s Compensation is a liability type of insurance that is designed to protect any employees or sub-contractors on the job. An all risk policy covers the broad spectrum from home damages to on the job injuries.
n
While no one expects damages or injuries to occur during a project your homeowners insurance may not cover any claims that result from a job being performed.
n
Bonding is different than insurance. . A bond is a surety that is designed to protect your investment and becomes a secondary contract between you, the contractor and the company that issues the bond. In the event that the contractor is unable to complete your work the bond is designed to protect you from financial losses.
n
Bonds are not usually something that are needed for small remodeling projects or simple repair work Tustin has both. If you are having major remodeling done a bond is something that should be considered. Many types of bonds are available for contractors and can be purchased on a per job basis. If you have any doubts about insurance or bonding ask your Tustin Plumbing and Heating contractor and make an inquiry with your homeowner’s insurance company.
n
Image credit: via freedigitalphotos.net/renjith krishnan
n