Many services and contractors include the phrase “licensed, bonded, and insured” in their advertisements. While consumers know that attribute is something to look for before hiring a company, they often don’t understand what the phrase actually means. Still, you definitely want to hire a company that is licensed, bonded, and insured.
Here’s the breakdown of what it really means:
- Licensed. While almost every business must carry some form of licensing, the regulations for companies vary from state to state. However, that license does not guarantee a company has the right qualifications for a particular job. It does mean that a company went through the proper channels to start a business, and it is recognized by the state as meeting the minimum criteria in a particular field. For security services and installers, it means the business exhibited the necessary documentation to perform services legally.
- Bonded. Bonding is a form of insurance that provides protection from liability for incomplete services. In construction, many general contractors require independent contractors to be bonded. This protects the general contractor from the legal obligation to pay for any unfinished work or damage caused by the independent contractor. The same format is used in a bond scenario between a security company and a home or business owner. Some businesses must be bonded to hold a license, and the requirements are different in every area.
- Insured. Insurance policies held by service companies differ. They commonly protect the consumer from paying for additional costs incurred from onsite injury or damage. Most cover liability, meaning any damages caused by the company’s work will be covered. Some also provide worker’s compensation in the event that someone is injured on a job site. Similar to bonding, some businesses must have insurance to be licensed in an area.
These three forms of protection go hand in hand. Most companies will be licensed, bonded, and insured because it is impossible to get one without another. Always make sure the companies you hire hold current licensing, bonding, and insurance. They should be able to provide you with a verifiable trade license number and proof of their insurance and bonding.
Hiring a company that is not licensed, bonded, and insured can mean future problems with a system or that damage during installation will not be paid for by the company. Once you hire a company, keep all the verification paperwork in an organized file. The information can be very important if there is ever a lawsuit, or if you need to prove the qualifications of a company.
High quality security services can mean the difference in whether your property suffers damage, illegal intrusions, and other security breaches. Trust a company like All Secured Security Services LLC to ensure your installation and services are handled properly.