In a three-part blog series which we kick-off today, we will explain the importance of Los Angeles consumers hiring only licensed, bonded, and insured contractors for home improvement jobs, including earthquake retrofitting, foundation repair and replacement, basement waterproofing, and caissons work.
What does it mean to be “licensed, bonded, and insured”?
The expression, “licensed, bonded, and insured” gets used quite a bit in the construction industry. As a consumer, you would have certainly heard this expression before, along with the advice that one should use only contractors who are licensed, bonded, and insured. But what does it really mean? Here’s a quick explanation!
- When a contractor is licensed, this means that he or she has met a certain set of requirements, competencies, and tests, as set out by the State of California, in order to provide consumers with construction services. We always recommend for consumers to only hire contractors who have both a city business license, as well as a state contractor’s license!
- A bonded contractor is one who has purchased a “surety bond”, which protects the consumer from possible losses that result from incomplete work by the contractor, damage to the property, or other failures by the hired contractor in pursuing the work. As a consumer, if you are damaged by the contractor, you can file a claim and receive compensation for your losses from the “surety” (the insurance company) which issued the contractor’s bond. We always recommend for consumers to make sure that their licensed contractor also is bonded!
- When a contractor is insured, it means that he or she has purchased various insurance policies which protect the contractor from insured losses, and thereby protects the consumer as well. We always recommend for consumers to hire only insured contractors, as they are more secure and can do a better job at managing risks to their operations!
In order to protect yourself as a consumer, you must hire only licensed, bonded, and insured contractors to work on your home or commercial property!
Come back in a few days to read Part Two of our Consumer Affairs Bulletin, where we will discuss how you can determine if your contractor is in fact licensed!
At Weinstein Construction Corporation, we are of course licensed, bonded, and insured! Our family-owned Los Angeles business has been in continuous operation under the same name and state license since 1977, and during this time, we have provided more than 72,000 free inspections to residential and commercial property owners in the greater Los Angeles region! Call Angela today at (800) 862-6582 for a free inspection and review of all your construction needs!