Many people do not understand the differences between a contractor bond and contractor insurance. On the surface, they appear the same. Although they do serve similar purposes, bonds and insurance protect opposite sides of the contract. Bonds protect the consumer from any breach of the contract while the insurance protects the contractor against potential losses.

Types of Bonds:

• License Bonds provide customers with the guarantee that the contractor will perform the agreed upon projects, as well as, pay any sub-contractors and suppliers used to complete the work.
• Taxpayer Bonds only apply to contractors in particular circumstances such as, an individual that is currently delinquent, or has a history of delinquency, regarding Arizona state tax payments.
• Contract Bonds guarantee completion of the work as stated in the original contract.
• Performance Bonds protect owners from potential financial losses resulting from a failure on the part of the contractor to complete the work stated in the contract.
• Bid Bonds guarantee completion of the work at the price officially listed in the contract.
• Notary Bonds protect the citizens of Arizona against financial loss resulting from improper conduct by a state Notary.

Types of Insurance:  

• Liability insurance provides coverage for insured businesses for potential bodily injury and/or property damage. This insurance not only covers incidents at the workplace, but also those reported after completion of the work or incidents that occur as a result of improperly completed work. 
• Property insurance provides two types of coverage, Equipment Floater and Builder's Risk. Equipment Floater provides coverage for both small items totalling $500 or less (unscheduled coverage) larger items (scheduled coverage). Builder's Risk provides coverage for both new homes and new commercial buildings while still under construction. This coverage includes theft from the job site, fire damage, damage resulting from vandalism, and severe weather-related damage. Some policies also include coverage for remodelling and restoration projects.

Contact us  for additional information.