Should contractors be licensed and insured?
While a contractor’s license may at times be the only legal requirement, both licensure and getting a surety bond often require having business insurance. This kind of comprehensive protection goes both ways, and your customers can feel more secure about their choice to work with you.
What license do I need to remodel homes?
A home improvement license is required for remodeling jobs worth between $3,000 and $24,999. Licenses are awarded by the Department of Commerce and Insurance Board for Licensing Contractors. You’ll need to pass a trade exam and a business and law exam.
What does it mean when a contractor is licensed and insured?
In the context of a business claiming to be licensed, bonded, and insured, it usually means that the business has purchased some of the most traditional insurance policies that just about every business needs, such as workers comp and general liability insurance policies.
What can I do with a home improvement license?
This can include the construction, erection, replacement or improvement of driveways, swimming pools, terraces, patios, landscaping, fences, porches, garages, and storm windows.
What is the difference between being insured and bonded?
Insurance protects you in the event of an accident and allows you to operate legally. Bonds help create trust that you’ll complete the required project and allow you to work on public jobs.
How much does it cost to be bonded and insured?
Cost to Get bonded and insured Others, like a fidelity bond, are typically paid as a percentage of the coverage sum you want, usually around 0.5-1% of the amount. This also applies for contract bonds. For example, if you are looking for a $50,000 bond, you can expect to pay around $500 as a starting price.
What is the difference between home improvement contractor and general contractor?
A general contractor provides a strong background in framing and carpentry along with many other skills. Because remodeling jobs typically involve several specialty areas, the general contractor serves as a project manager who coordinates the entire job.
Do you need a general contractor’s license to flip houses?
No, you do not legally need a contractor’s license to flip houses. With a license, investors may work on the individual assets themselves instead of hiring a contractor. In fact, some investors prefer working on their own properties, but doing so will certainly take a lot more time.
What insurance should I require from a contractor?
The most important insurance that a hired contractor should have is workers compensation insurance. Hiring a contractor without workers comp insurance could leave you paying an injured employee or subcontractor’s medical bills indefinitely, just for hiring someone to fix your property.
What is the difference between a general contractor and a home improvement contractor?
General contractors manage any kind of building, renovating, or remodeling project. Because remodeling jobs typically involve several specialty areas, the general contractor serves as a project manager who coordinates the entire job.
How much can you work without a contractors license?
Though, it is possible to hire an unlicensed contractor in California, you can only hire them for projects that are less than $500, including labor and materials. Therefore, the only work that can be completed without a contractor license in California is any project that does not equal or exceed $500.
Can you be bonded but not insured?
They are designed to protect a person or a business in the event of something going wrong. However, they are not the same thing. Being bonded is not insurance. It can be a little confusing when the terms bond insurance, surety bond insurance are being used, but being bonded is still not the same as being insured.