Licensed, Bonded and Insured

What Does Licensed, Bonded and Insured Mean?

Licensed means a government authority lets the business do this work. Bonded means a surety bond may pay valid claims, up to a limit, if the contractor fails certain obligations. Insured usually means liability cover for damage, and workers’ compensation covers injured workers. Ask for proof of each one, because the words alone prove nothing.

Updated November 6, 2026 · Source: construction.broker planning guide (our own assumptions, not survey data); always compare written bids.