Contractor bonds and insurance are two important requirements that you should look for when choosing roofing companies to hire. The difference has been a source of confusion for more than a few homeowners and contractor applicants. In this blog, Expert Contracting sheds some light on the difference between the two.
Contractor’s License Bonds
Contractor’s license bonds, or simply, contractor bonds, places conditions on contractors to comply with state and federal laws and regulations applicable to contractors. If contractor doesn’t comply—for example, finishing a roof installation that’s not up to code—then the licensing board may file a claim against the bond. If the claim is legitimate, the bond pays the claimant, then the contractor repays the surety. This is the homeowner or customer’s assurance that the installation, replacement or repair work will comply with all applicable laws.
Workers’ Compensation and Liability Insurance Policies
Your contractor should have at least two types of insurance coverage: workers’ compensation (also known as workers’ comp) and liability insurance. Workers’ compensation is a type of insurance coverage that covers the contractor’s employees from instances of workplace injuries or illnesses.
Projects such as roof replacement should be convered by workers’ compensation. It ensures coverage for employee medical care, disability income and/or rehabilitation. Without worker’s compensation, the contractor and/or the client may end up liable for related costs. Liability insurance, on the other hand, covers accidental property damage. If the contractor accidentally damages property or a part of the house during the course of installation, liability insurance provides coverage instead of the client or homeowner’s insurance.
Does Your Contractor Need Both?
The short answer is: yes. There are, of course, exemptions that vary depending on factors such as the type of project and the insurance provider. But the bottom line is that a bonded and insured contractor can protect client from liability in case of noncompliant work (which can cost a lot of money to correct without a bond), work-related injuries or property damage.
Expert Contracting is your leading provider of roof repair and installation services. Give us a call at (716) 508-3700 or fill out our contact form. We serve customers in West Seneca, NY, and the surrounding areas.