House Painter: What is a Licensed, Insured & Bonded?

Hiring a contractor is a scary proposition. The terms licensed, insured and bonded are tossed around, but what does it mean? Do I need it? Simply: yes! Here are the questions to ask beyond what is a licensed, insured and bonded painter?

You should only hire professionals that exhibit the following:

Have good business practices
Show risk management in place
Can provide you their insurance information
Talk willingly about their background and credentials
Have a good internet presence

This information should be the most basic offering from any paint contractor. Those who can’t provide this to you could potentially put you, and your job, at risk. Here are the issues working with a provider without these items could mean:

Financial Risks

If proper coverage is not provided by the contractor and you run into issues with the job on your property, you might be on the hook to pay for it. There are a lot of horror stories online of property damage, poor workmanship, lost deposits and just unscrupulous contractors.

Underbids and no online reputation are also cause for concern. If it’s too good to be true, chances are, it is. These contractors have the potential to disappear mid job, taking your deposit with them. Getting another contractor to finish half completed and haphazard work is difficult and expensive.

Unlicensed, uninsured brings financial responsibility to your door. Here are some of the stories from homeowners who worked with contractors not carrying the proper requirements. You could be on the hook for any or all of the following:

Medical bills if someone gets injured on your property
Lawsuits of the contractor for any reason
Increases to your insurance policy due to claims
Homeowners policy cancellation
Out of pocket expenses to replace or repair shoddy work
Costs for potential thefts or other crimes on your property.

Licenses

Typically, licensing is relatively inexpensive and easy to obtain. Contractors that are not willing to go through the process should be avoided. Unlicensed contractors could bring up other issues such as:

Unlicensed usually runs hand in hand with uninsured. If a contractor won’t go through the licensing process, they are highly unlikely to go through the insurance requirements. Accidents on your property will become your financial responsibility.

While it’s not guaranteed that unlicensed workers produce poor quality jobs, it just seems that often it happens together. Licensed and trained providers are aware of best practices and quality standards that should be given with a professional job. Sloppy work and unlicensed businesses just seem to be synonymous with each other.

Don’t become a homeowner left in a lurch by a less-than-honest unlicensed and/or uninsured contractor. Scams are all over the industry of home improvement. Protect yourself by being vigilant for your property. Here are signs of scammers to watch out for:

Non-existent contracts. There should be a clear contract provided to you before the work begins or a check is signed. You need to have a recourse option should a dispute crop up. At a minimum, a licensing agency has the ability to suspend or revoke a contractor’s license if there are unresolved issues in your home.

Subcontractors. A lot of painting companies hire subcontractors for their paint jobs. Make sure your contractor’s insurance covers the painters they bring in to the job site, regardless of status.

Crimes Bonds

Strangers in your home is rarely easy. You don’t know these people and they are privy to your home. Allow your mind to ease by checking if your painter is covered for unintentional risk. If personal property goes missing over the course of the job and the painter is bonded, you have nothing to worry about. If not, you could be dealing with a long battle and small chance for recouping the items or cost of them.

Be smart

It’s important to be smart about bringing anyone into your home. Look at how they handle themselves at the estimate appointment. Do they answer your questions, or squirm? There will undoubtedly be warning signs. Be aware of any of the following:

Phone calls or door knocks that are unsolicited
Pressure to sign contracts
Undetailed application methods and materials
Limited presence on the internet
No business address or phone number
No final price with the estimate
Missing written contract
Unable to produce or prove insurance or licensing

When hiring a painter, always choose a provider with licensing, insurance and bonding. It will not guarantee a great paint job, but give you options if there are issues. Always take your time to make decisions. Our estimators at CertaPro Painters are happy to discuss any questions you may have or provide a free in home estimate.