The bond is an agreement that binds the painter to cover any losses incurred by a property owner if the painter does not complete the job according to the contract specifications. It protects the property owner from a failed paint job by the painter.
What does it mean when a painter is bonded?
Every licensed painter is required to be bonded. The bond is basically an agreement that binds the contractor to cover the losses incurred by a property owner if the project does not complete according to the contract specification.
What does it mean to be bonded as a contractor?
Bonded means that a contractor has purchased a surety bond to guarantee its legal and financial obligations. Most states, and many local governments, require construction contractors to obtain contractor surety bonds. … At its most basic level, a surety bond is a legally binding three-party contract.
What is the difference between licensed and bonded?
The difference between being bonded and being insured
When you say that you are licensed, bonded and insured, you have the required licensing for your business, proper insurance and you have made payments for additional coverage with a bond. A bond is like an added level of insurance on your coverage plan.
What type of bond does a painter need?
- Take the C-33 exam for painters.
- Show proof of a Surety Bond of at least $15,000.
- Show proof of Workers’ Compensation (if you have employees)
Should painters have insurance?
Every painter should carry General Liability insurance with not less than $1 million in coverage. This insurance protects the homeowner from damage done by the painter, e.g. 5 gallons of white latex is spilled on your new roof or a ladder crashes onto your convertible.
Are painters required to be licensed in Michigan?
There is no state license required for painters.
What is the difference between insurance and bond?
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.
What does a bond cover?
A bond is an obligation of the surety company (the company issuing the bond) to protect one person (a.k.a. Obligee) against financial loss caused by the acts of another (a.k.a. Principal). Performance Bonds are to insure that the contractor performs the work they are contracted to perform. …