Licensed, Bonded And Insured Contractors

Always use licensed, bonded and insured contractors!

What does it mean to be licensed, bonded and insured contractors? We have seen these keywords in ads and on websites for general contractors of all kinds; however, do you really know the significance of it. If you have ever had any work done in your home, you know what it takes to choose a good contractor. Many times we are blinded by our finances and finding the cheap way out of a repair, but that usually comes back to haunt us. Let’s take a look at why it is important to understand why and how a contractor should be licensed, bonded and insured.

Contractors should possess the necessary license to complete work on your home. For certain professions, a license is needed to show the business passed all legal requirements to have said business open and operating. For example, you wouldn’t go to a nail salon that doesn’t have a license. In the field of cosmetology, all working employees must have a cosmetology license before they can give a customer a manicure or pedicure. The facility must also pass inspection for licensing. In regards to contractors, you wouldn’t want any random person off the street using a sledge hammer in your kitchen without being trained and licensed to do so.

Insurance is always needed in case something goes wrong. You need car insurance in case of a motor vehicle accident or homeowners insurance if a tree falls on your home. In the event a contractor gets hurt, you definitely want him or her to be insured. Let’s say McCauley Electric is installing a new ceiling fan in your home. If our contractor gets electrocuted and he’s not insured, he then becomes a liability to you the homeowner. The claim can be filed against you. If the contractor is insured, the claim is filed against the company, McCauley Electric. Make sure every contractor is insured first.

Bonded is probably the least known of the three. When a contractor is bonded, he or she has secured money with a bonding company. That money is available in the event a claim is filed against the company. The money is controlled by the state, not the company. The bonded company has to complete a full investigation to determine if the contractor is trustworthy and good enough to insure.

So there you have it. Use your best judgment when selecting a contractor. Look for credentials with the BBB or on the contractor’s website. Have a conversation with your potential contractors. Make sure the contractor is knowledgeable and can answer all your questions. Direct communication should always be open.

As always, if you need an electrical contractor, call McCauley Electrical Service for professional electrical repair services.