What does being licensed mean?
Contractors have been granted a trade license as mandated by state and local laws. It generally requires passing competency tests about business practices and trade skills, paying a fee and proving insurance and/or bonding
What does being Insured mean?
Most states require that contractors demonstrate proof of insurance as part of obtaining a trade license or registering. Contractor or business insurance will usually fall into two types
1.Liability — Covers property damage and injuries caused by the contractor's work. It will not normally pay the cost of repairing or replacing bad work; that's the purpose of the bond.
2.Workers' compensation — Provides payments to injured workers, without regard to who was at fault in the accident, for lost wages and medical services. It also provides benefits to the contractor's family in the event of death. If the owner is the only employee, workers' comp may or may not be required, depending on the state.
Without these types of contractor insurance, consumers could end up paying out of their own pocket if their homeowner's policy is insufficient to cover the bills should a contractor become injured or an accident occurs on the consumer’s property.
Any contractor you hire should be insured. When interviewing a prospective company, ask to see a current Certificate of Insurance then call the insurance company to verify that the policy is current and the coverage is sufficient for your project.
What does being Bonded mean?
Contractors have an arrangement with a third party (a private bond issuer or a recovery fund held by the licensing municipality). Homeowners may petition for reimbursement through that third party if contractors harm them financially because of shoddy work or failure to pay subcontractors as promised.
Artisan General Inc. is a fully licensed, insured and bonded business that has over 20 years of experience providing home improvement services. Their best general contractors also specialize in kitchen, bathroom and basement remodeling.