Pay close attention as you drive the busy freeways and you'll likely find that many service trucks advertise the promise of "bonded and insured" on their doors. But what does that really mean? If you hire a roofer that is bonded and insured, what does that really get for you?
The answer is that it's nearly impossible to say without knowing what the insurance policy says. Simply calling something "bonded" doesn't mean much without knowing what type of bond. The array of bonds available from any surety carrier may include: license & permit; public official; notary public; fidelity; fiduciary; lost instrument; dishonesty (sometimes called janitorial); tax preparer or contract bonds, sometimes called bid, performance or payment.
Likewise, simply calling something "insured" can mean many different things. The State of Texas requires every vehicle to have liability coverage of $30,000 per passenger and $60,000 per occurrence. Take a minute and go look at how much a new Toyota, Chevrolet, Dodge or Ford sells for at the dealership. Would $30,000 be enough to repair a new vehicle? Maybe not. Or consider that any contractor can buy a low price insurance policy with some dangerous exclusions, like products and completed operations, and still be "insured".
The truth is that every policy is different and in many cases, finding the cheapest coverage available can end up costing the most money.
The good news is that no one expects you the consumer to know everything. An independent agent is in your community and always willing to answer questions you may have about insurance on your home, car and business. And when you need to find a "bonded and insured" contractor who has the necessary coverages to protect you when they complete a job for you, It's the forever trustworthy independent agent that will be able to recommend someone for you.
Soules Insurance Agency
If you have additional questions concerning commercial or personal insurance, please contact us. We welcome your questions and look forward to providing you with answers.