What is what does it mean to be licensed and bonded?

Being "licensed and bonded" are two separate, but often related, requirements indicating a level of professionalism and protection for consumers, particularly when dealing with contractors and other service providers.

• Licensed: A license is a permit issued by a government agency (state, county, or city) that allows an individual or business to legally perform certain services. The purpose of licensing is to ensure that individuals or businesses meet specific qualifications, have the necessary training, and are knowledgeable in their field. Requirements for obtaining a license can include passing an exam, completing apprenticeship hours, and demonstrating financial responsibility. Being licensed signifies that the individual or business has met the regulatory standards and is authorized to operate within the specified jurisdiction.

• Bonded: A bond is a type of insurance policy that protects consumers from financial loss if a contractor or service provider fails to fulfill the terms of a contract or violates regulations. A bond is not insurance for the contractor, but rather a financial guarantee for the client. If the contractor doesn't complete the job as agreed upon or violates the law, the client can make a claim against the bond to recover damages. The bonding company will then investigate the claim, and if found valid, will pay the client. The contractor is then responsible for repaying the bonding company. Common types of bonds include surety bonds and fidelity bonds.