If you’re not new to the home remodeling scene, you’ve probably heard the terms “contractor bonds” and “insurance” used interchangeably. However, these two terms mean different things and serve different purposes. In this article, DreamMaker Bath & Kitchen of St. Louis Park sheds some light on the often-confusing nuances between a contractor bond and insurance.
State laws require contractors to obtain bonds and insurance as part of the licensing process. While both requirements provide compensation, the extent and purposes differ. A contractor license bond serves as an agreement between the contractor, the state licensing board and a surety bond company. This agreement stipulates that a contractor be held responsible for any violation of the law with regards to construction.
The claimant can be anyone who has incurred any damage due to the contractor’s failure to comply with building regulations and the like. Contractor license bonds also ensure that a contractor pays its employees and subcontractors for products and services provided.
This includes two primary types of insurance, namely workers’ compensation and liability insurance. Workers’ compensation insurance protects the interests of the contractor’s employees. This includes medical benefits in the event of work-related injury, among other things. Liability insurance, on the other hand, covers property damage or injuries caused by the contractor while on the job.
Reputable home, kitchen and bathroom remodeling contractors protect themselves, their employees and their customers with these types of insurance.
Count On DreamMaker for Responsible Remodeling
When you choose to work with DreamMaker Bath & Kitchen of St. Louis Park, you can rest assured that you are dealing with a fully bonded and insured, professional remodeling company. Call us today at (954) 637-6386 to learn more about our processes. Let’s start a conversation!