What Does it Mean to Be Bonded and Insured?

May 17, 2013



Insured and Bonded Windows and Doors - Clera Windows + Doors

These two terms get thrown around a good deal in many industries today, but what exactly does it mean to be bonded and insured? Being bonded and insured provides a level of safety for the customer and for the business.


A bond is simply that – a bond between the company and the customer. In the event that any contractor stops working hallway through and does not complete the project, the bond states that the customer will be reimbursed for the incomplete work. If a company is bonded, you will likely find the information on their marketing materials: business cards, websites, etc. Being bonded does not provide full coverage against financial liability. Damages must be covered by the insurance policy.


If something goes wrong when an installation is taking place, you want to be sure that the company will make it right. If a company is insured and the contractor damages anything in the house, the customer will receive financial compensation.

At the same time, this insurance provides the employer with financial compensation if anything happens while performing an installation. The insurance will cover any lost hours because of an inability to work. This does not mean that you are protected if anything happens. It is important to read any insurance policy so you understand what happens when an injury occurs. Don’t just assume you’re safe.

Bonded and Insured

When a company is bonded and insured, they are providing full financial coverage in any event concerning damages, incomplete work or anything else that can crop up.

You will likely see companies out there that do not offer a bonded and insured service and/or product. Of course, their prices will be cheaper, because the premiums for being bonded and insured can be costly. They will pass these costs on to you, the customer. Before you jump at the opportunity, the costs that may occur after something goes wrong during the installation may be significantly higher than if you were to pay for a bonded and insured company in the first place.


You may also hear this term thrown around with the previous two. If a company is licensed, it means they are licensed to perform in that city, country or province. It does not mean they are qualified to perform any job- it just means they have completed the required standards and paperwork to be licensed.

By letting a company into your home that isn’t bonded and insured means that you are taking a risk. Even if their services are cheaper, you may end up paying for much more than you bargained for if somebody gets injured somewhere along the way.

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