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Ask Furr: Is Licensed, Bonded & Insured Important?

Ask Furr: Is Licensed, Bonded & Insured Important?

Q: “Your company says that they’re “licensed, bonded and insured“. I’ve done the research and a lot of other companies don’t seem to be able to say that. What is a “Licensed, Bonded and Insured” company vs. one that isn’t?” -Cindy C. Great Falls, VA

This question posed by one of our new customers is one that we get a lot. Before getting any home service, most homeowners research what they need and companies in the area that can meet that need efficiently and at an affordable price. 

When scouring the internet for reputable reviews, great services, and prices that seem reasonable, you might have noticed that some companies boast years of experience, certifications, or unique services. Although we feel that every home service company should be licensed, bonded, and insured, many are unable to claim this title. 

So what does Licensed, Bonded & Insured actually mean?

Why choose a contractor who has these characteristics? To fully understand that you need to understand what the terms entail and what they mean to you:

LICENSED: Choosing a licensed company is important for several reasons; firstly, the license proves that the contractor has proved competent in testing, training, and experience. Secondly, the license gives the homeowner security, knowing that if the contractor fails to complete the job or meets expectations, they can file a formal complaint with the agency with whom the company is licensed. The license can also mean that the contractor is bound to codes, rules, or statutes that govern their professionalism and integrity. 

BONDED: A company can obtain a bond for specific jobs. The reason that bonded home service companies are preferred is because the authorities that issue bonds require the company to go through a lengthy process that includes information pertaining to professional credentials, employees, financial statements, and a code of ethics. If a company is capable of winning the approval of a bond underwriter, it is certain to perform at a higher standard. 


INSURED: Companies who insure their work are companies you can rely on. Using a contractor that doesn’t work with liability insurance could prove to be a costly mistake. For example, hiring a friend to fix a sink sounds great–but what if he installed the pipe incorrectly, leading to massive flooding….who is responsible for the damages? You’re stuck! An insured company means you’re protected from issues like this. 

The bottom line is a company that is licensed,  bonded, and insured is more often than not, a reputable company that you can rely on to protect you. When searching for the right professionals, make sure that these traits are checked off of your list! 

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