Skip to content

Tag: insurance

What Can Happen if Your Contractor Isn’t Insured

Working with a non-insured contractor is the worst possible risk that any home owner could take. All contractors must have two kinds of insurance, those are, worker’s compensation and liability. Both of these insurance policies protect the homeowner in various ways. For instance the liability insurance ensures that you as a home owner are protected in case damage is caused to the home by the contractor. This could be in such a case whereby said contractor was fixing the upstairs bathroom and the bathtub came crashing through the floor. A common misconception is that homeowner’s policy will cover you in such an event while in real sense, it does not.


Failure to hire insured contractors could lead to loss of your property. In a worst case scenario, you might be sued all the way into bankruptcy. Furthermore, most of the state laws allow one to have a limited amount of property or wealth once you have been declared bankrupt therefore inconveniencing you.  Here is a closer look at what can happen.

Secondly, as mentioned earlier, homeowners policies of insurance exclude the damages which occur as a result of using non insured contractors. A legal precedent which may illustrate this is the California case of Mendoza versus Brodeur whereby the plaintiff had his neighbor do some work on his home. The home owner’s defense was that he thought the defendant was an insured contractor. However, the court quashed this defense and held that anyone who hires a contractor who is not insured should be covered by workers compensation in the event that an injury occurs during the job.

Even though there is no guarantee that a non-insured contractor will perform a poor job as compared to he who is insured, the risks involved are too great. This is why:


Proof of insurance in the specified field shows that whoever you are hiring has at least attained the minimum level of skill. This shows that the contractor did not simply gain his experience from watching contractor shows, rather, he took his time to learn and understand the basics of contractorship and what it takes to do a great job.


Supposing you would like to sell your home, there are certain facts which must be disclosed to the next buyer. If the paperwork shows that the contraction projects on the home were carried out buy a contractor who was not insured, the general value of the property could be lowered significantly. Consequently, you will suffer a loss for a property which you had definitely put a lot of work in.


Apart from the damage that may be caused to the home and the contractor himself, third parties such as passersby or nearby property may be at risk. In the case that a third party has been hurt due to the contractor’s negligence, the burden of awarding damages falls on the homeowner thereby flooding him with even more expenses.

The most essential thing to keep in mind before hiring a contractor is that the safety of your assets come first. Getting an insured contractor saves you from issues like bankruptcy and having to compensate the injured worker during the period of the contract.Reputable contractor companies can easily be found online and they are also quite affordable.

Securing a Contractor Bond is an Investment in Your Business

Do you know what a contractor bond is all about? Did you know that securing a contractor bond is an investment in your business growth? Well securing a contractor bond places you in that perfect investment opportunity you wouldn’t dare miss. A contractor bond is simply a surety bond which serves a great purpose to the parties involved. The main purpose of this bond is to legally protect you as a contractor and other parties involved in the event of unethical issues. Apart from this, the contractor bond will also help you out in circumstances brought by costly decisions that may affect the business.

The parties protected by this kind of legal bond include:

  • The contractor
  • The company which is hiring your services
  • The agency issuing the state bond

Benefits of getting a contractor bond

  • Contractor bonding will protect the public since it binds you to fully provide services that do not cause any harm. By taking such initiatives, you will easily win the trust of the public with your services. Nothing will stop you from getting loyal customers that will directly influence your growth. Contractor bonding will make you more cautious about the upcoming market trends that you will ensure to protect the consumers.
  • In the event that a person is harmed due to unethical decisions, a case can be filed against the bond for compensation. You as a great investor wouldn’t want to go through this, why? This basically implies losses to your side. Take the bold step by investing in a contractor bond to be protected yourself from such setbacks
  • Getting this bond is an affirmation that your business will always uphold ethical standards and maintain professional services. This is a legally binding duty which is your responsibility to uphold. Through this, you will be able to create a name for your business and it won’t be long before you to rib from your investment.
  • Contractor bonding is a secure way of protecting your business from volatility and widespread mistrust that might arise in the course of your investment. In order for you to keep the other parties committed to the cause of your investment, then you will have secured a contractor bond. This should be able to protect you from taking full responsibility on irregularities that may have been committed by other parties


Be wise and grab this great opportunity by securing a contractor bond that will help secure your business investment. Do not risk your finances anymore to untrustworthy developers who will leave you in the middle of the way. Reach your business prime by taking advantages of the great opportunities a contractor bonding brings your way.