• Many companies advertise that they are "bonded and insured." What does this mean? Hiring a company that is bonded and insured provides some level of consumer protection in case the project doesn't go quite as planned.

    Bonded company

    If a company is bonded, they have set aside security or collateral with a bonding company. If the company fails to do the job---or cannot finish the job due to bankruptcy---after you have paid them, you may be able to receive compensation through the bonding company.

    Bonded employee

    If employees are bonded, that means the company has completed background checks on all their employees. While background checks are not foolproof, bonding does give you assurance that the company's employees have been screened. Businesses that commonly bond employees include general contractors, temporary personnel agencies, janitorial companies and companies with government contracts.

    Liability Insurance

    Insured means that the company provides liability insurance for their employees. If an employee damages your property or steals something, the company's insurance will pay to repair or replace the item.

    Workers' Comp Insurance

    A company that is insured also provides workers' compensation insurance for their employees. This means if an employee is injured while on the job at your home, the company's insurance will cover the employee.


    Some cities, counties and states require companies to be bonded in order to receive a professional license.

    Trust---but Verify

    To verify that a company is bonded and ensured, ask to see their bond document and insurance verification paperwork. You can also call the bonding company to confirm what the bonding covers.

    Source: What does it mean if someone that cleans your home is "bonded and insured?"

    Montana Department of Justice: Choosing a Contractor Bonding

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