Why Are Licensed & Insured Contractors Better?

Remodeling Contractor: Why Are Licensed & Insured Better?

Anyone thinking of undertaking a major project for their home, such as a kitchen or bathroom remodel, will get the best results by working with an experienced, professional remodeling contractor. One of the most reassuring things about this is that professionals will come with a lot of “safety features,” such as being licensed and insured, sometimes even bonded. But how do these benefit you?

Licenses Mean Legal

The first and most important thing to note is that a fully licensed remodeling contractor is legally allowed to work because of the license, just like any professional. In the same way, that lawyer, engineer, or even the driver of a motor vehicle requires passing a test with a certification that recognizes them has having passed that test, it’s the same for a remodeling contractor.

Someone who does not have a license is not legally allowed to work in this profession. If nothing goes wrong, this may not present any issues. But if something should go wrong, and you need to seek legal compensation or settle a dispute, an unlicensed contractor doesn’t have to abide by the rules of established professionals.

Insurance Is Peace Of Mind

An insured remodeling contractor protects you, their own business, and their employees should anything go wrong. As with home or car insurance, an insured remodeling contractor has the financial backing of an insurance company should compensation be required for anything.

This means that if an accident occurs and other parts of your home are damaged during the remodeling, the contractor’s insurance will provide compensation for the damage. On the other hand, if an accident occurs where one of the contractor’s workers is injured and needs medical treatment, insurance means that workers’ compensation is there to provide coverage and ensure that everyone gets fair treatment and required medical attention without missing out on a salary that could be important in supporting a family.

Sometimes Bonded Contractors Are Available

Some contractors provide additional peace of mind by being bonded. This is similar to insurance, except that it refers to the completion of a contract in this case. A bond surety is issued to a contractor, and if a contractor fails to complete a contract as agreed and defaults on it, the bond ensures a company will come in to provide financial compensation for the incomplete job.

There are different kinds of bonds as well. The surety bond refers to the completion of the contract. A fidelity bond is compensation for more criminal actions of employees, such as theft or forgery. Then there are contract bonds, but these are only applicable to larger, public works projects.

If you’re working with a remodeler contractor who is not licensed or insured, there’s a chance that the quote they present may be significantly cheaper than one given by a licensed professional. However, that lower quote comes at the cost of increased vulnerability for you as a client, especially if something goes wrong, whether that is a genuine accident or a deliberate act of theft or fraud on the part of the unlicensed contractor, who doesn’t have the same legal obligations as a licensed professional.