Tuesday, October 28, 2008

Electrical License and Bonding


Unless you live buried away in the extreme northeast corner of Montana in an area so remote that no one, not even the IRS or junk mailers, knows it exists, you should expect an electrician to be licensed, bonded, and insured in accordance with local and state laws. These requirements are fairly standard across the country. They protect you and the contractor from each other if problems arise. A license is simply permission from a governing authority to do a specific business. It shows that a contractor is registered, often with both the city and the state, and has met certain standards. This enables a contractor to hang a shingle out and say, “I’m an electrician.” It also means the local government has collected a registration fee and will be collecting taxes from the licensee.
Two requirements usually have to be met before a contractor’s license is issued:
  • The individual must be bonded.
  • The business must be insured.

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