Licensed contractors must carry a “completion bond”. It is typically $25,000.  This bond covers homeowners, material suppliers, and workers if a contractor does not complete or pay the costs associated with the project.  It does not cover property damage or injury.

This insurance covers the workers on the job.  If an employee injures his back or falls off a roof Workers Comp covers lost wages, rehab costs and medical bills.  If your contractor does not carry Workers Comp and a worker gets hurt, you could be responsible for the costs associated with the injury.

General Liability helps cover damage that is not covered by the other two.  If a freak rain storm occurs during your project and your ceilings are coming down, this covers it.  If a nail gun falls on your shoulder and you can’t work, this helps pay those costs.