Contractor Bonds and Insurance: What Are the Differences?

You probably hear the phrase “bonded and insured” when discussing contractor credentials. Contractor bonds and insurance are two of the most important requirements a roofing contractor should have. In this blog, Storm Master Inc sheds some light on these two contractor credentials.

Contractor’s License Bonds

Contractor’s license bonds, also known as contractor bonds, compels contractors to comply with state laws, federal laws and other regulations that apply to contractors. Noncompliant contractors, such as those who do not follow local and international building codes, can face a claim against the bond filed by the licensing board. If the claim is found to be legitimate, then the bond pays the claimant. The contractor is compelled to repay the surety. For homeowners, this means whether the contractor performed minor repairs or a complete replacement, they can have the assurance that the roofing work complies with all applicable laws.

Workers’ Compensation and Liability Insurance Policies

Contractors that perform roof repair and installation need to have at least two types of insurance coverage: worker’s compensation (or workers’ comp) and liability insurance. Workers’ comp is a type of insurance coverage that covers installers and employees from workplace injuries or illnesses. It provides coverage for employee medical care, disability income and rehabilitation.

Liability insurance covers accidental property damage that may occur while the project is ongoing. This includes instances where the contractor accidentally damages property or part of the house during the course of roofing work. Without both, the contractor and/or homeowner may end up being liable for the property damage or injuries.

Does Your Contractor Need Both?

The short answer: yes. As with most other types of insurance coverage, there will be exemptions that vary depending on the insurance provider, as well as the type and scale of the project. But it all boils down to this: a bonded and insured contractor can protect their customers from noncompliant work, as well as from liabilities stemming from work-related injury or property damage.

Storm Master Inc is your leading provider of roof replacement services. Give us a call at (817) 717-5348 or fill out our contact form. We serve customers in Fort Worth, TX, and surrounding areas.