The Difference Between Insured and Bonded
(in roofing)

Bonded: A financial safety net for homeowners

Being bonded means that a roofing contractor has secured a surety bond, which is a financial guarantee provided by a third-party surety company. This bond protects the client by ensuring that if the contractor fails to fulfill their contractual obligations or if issues such as incomplete work or financial disputes arise, the bond can be used to compensate the homeowner up to a specified amount.

• Financial Protection: The bond acts as a safety net for homeowners. If a contractor does not complete the work or causes damage, the bond can help cover the costs of repairs or completion.
• Risk Mitigation: Bonding gives homeowners reassurance that the contractor has a financial stake in completing the project responsibly and to a high standard.
• Enhanced Credibility: A bonded contractor has demonstrated their reliability by obtaining a bond, which can enhance their reputation and trustworthiness in the industry.
• Bonded Roofers in Ontario Bonded roofers in Ontario are rare, but they do exist. Often large projects and government contracts require a roofer to be bonded. This is because the bond is a financial guarantee that the project will be completed as agreed upon.

How Bonding Benefits Homeowners and when you should get a bonded roofer

Most roofers in Ontario do not carry a bond. However, if you are planning a large project, or you're asked to give a large deposit long before work starts, you should consider hiring a bonded roofer. This is because the bond is a financial guarantee that the project will be completed as agreed upon.
Before entering a contract, ask your contractor to provide details of their bond, including the bond amount and the issuing company. This transparency allows you to assess whether the bond offers sufficient protection based on the scope of your roofing project. Before entering a contract, ask your contractor to provide details of their bond, including the bond amount and the issuing company. This transparency allows you to assess whether the bond offers sufficient protection based on the scope of your roofing project.

Insured: Guarding Against Accidents and Liabilities

Insurance for a roofing contractor typically includes two primary types of coverage: general liability insurance and workers’ compensation insurance.

• General Liability Insurance: This coverage protects both the contractor and the homeowner from financial loss in the event of property damage or bodily injury that occurs during the roofing project.
• Workers’ Compensation Insurance: This insurance covers medical expenses and lost wages for workers who might get injured on the job, ensuring that the contractor is not personally liable for workplace injuries.
  Workers compensation insurance is mandatory in Ontario for all roofing companies. This is a the mandate of WSIB and every business can be looked up at WSIB.ca to verify coverage.

Verifying Insurance Coverage

As a homeowner, you should not compromise on these coverages. Any roofer should have no problem showing proof. If they do have a problem or give you a hard time, you should not hire them. Always request proof of insurance from your roofing contractor before starting any work. Check that the policies are current and that the coverage limits are appropriate for the scope of your project.

By hiring a contractor who is licensed, bonded, and insured, you minimize the risk of encountering substandard work, financial loss, or legal complications. It’s a smart way to protect your home and investment while ensuring the project is completed safely and professionally.