While shopping around for a contractor, plumber, landscaper, etc., you've probably seen the phrase "bonded and insured" before. If you've ever wondered what exactly that means and whether or not it's important, this post is for you.
First, here's a quick overview of the terms:
Bonded: If a contractor or business is bonded, it means that it has taken out a surety bond with a third party, which you as the client have recourse to if, for example, the person or business you've contracted with doesn't complete a job, doesn't secure the appropriate permits, or completes the job poorly and you have to pay to get it fixed. A bonded business is one that gives you a guarantee that the job will be done correctly, and you won't be left in a bind.
Insured: There's a couple of different kinds of insurance that are important for a contractor to carry; namely: liability and workers' compensation. If there is any damage done to your property by the contractor, their liability insurance has you covered. If an employee is injured on your property, their workers' compensation coverage will take care of it.
So: why does it matter? A contractor or a business that is bonded and insured is a business that takes itself seriously, cares about its reputation, and cares about its clients. When you choose to do business with a person or company that does not have this guarantee, you assume a lot of risk. What if damage is done to your property in a tree removal? What if a drainage system is installed or repaired improperly and now your entire lawn is flooded? What if you pay for a job to be completed, only to have your calls go unanswered while the work is not done?
When it comes to your peace of mind and your property, taking the time to double check that you're hiring professionals that are properly bonded and insured is well worth the investment.