Hiring a Paint Contractor: What’s the Difference Between Bonded and Insured?

Hiring a contractor to provide service in your home can be a confusing prospect. A reputable contractor should provide insurance, licensing and bonding. They all provide important protection benefits for you during the job. But what is the difference between bonded and insured?

Bonding

Bonding is a way to protect the customer if a contractor doesn’t pay for permitting, fails to complete the job or doesn’t pay for supplies or subcontractors. Otherwise, the homeowner could be on the hook.

As the hiring person, all you need to know is that your contractor is bonded. He will be able to provide a bond number and certification where you can confirm their status. It provides you a recourse should anything monetary go wrong with the project.

The requirements to be bonded vary from state to state. It’s important to find out what the requirements are in your area and how to confirm a contractor’s participation.

Insurance

When it comes to insurance for contractors, there are typically two kinds liability and worker’s comp.

Liability insurance is used to cover any contractor-caused damage on the job. It doesn’t usually pay for repairing, replacing or fixing shoddy work. That would fall under the bond.

Worker’s comp provides protection to the workers under the contractor should they get injured on the job. It takes care of lost wages and medical needs regardless of the fault of the accident.

Confirming the liability and worker’s comp insurance for your painting company is an easy prospect. Any reputable proprietor will be happy to provide you their certificates of insurance and policy numbers for you to confirm.

Licensing

While you are doing your diligent research into companies, it’s a good idea to look into the contractor’s licensing. Most states require licenses for particular trades including painting. Check with your local municipality to find out the details.