What does "Bonded and Insured" really mean?
When working as a Painting Contractor, you will come across the phrase "Bonded and Insured."
You may be asked to provide proof of this to your clients. You want to be able to compete against the firms that are "Bonded and Insured," in addition to verifying that you are "Bonded and Insured" if your business is marketed as this.
This is not just a catchy phrase that painting contractors use, but a statement of your firm's ability to back up a project and protect your client and your firm from claims.
Bonded: Refers to holding or being able to readily obtain a Surety Bond for your client. In summary, purchasing and providing a Surety Bond is a financial guarantee that you or your company can deliver on a project. In some states, a Surety Bond is necessary to obtain a contractor's license.
Insured: Refers to maintaining and being able to provide proof of "General Liability Insurance" and in many cases "Workmen's Compensation". Dangerous tasks are common in the construction workplace, and workman's compensation helps to take care of an injured worker for medical bills and wage losses sustained due to the injury. General Liability offers protection from property damage due to negligent products, as well as protection for you and the client, if for example a ladder crashes down on your client's new car or your overspray gets on much more than the masking.
For more information, there is a great article series now available on Blogging Painters: