Whats the difference between insurance and bonded insurance on roofs?

i started my construction business and im looking for some good insurance, and im not too sure whats the difference between a regular construction business insurance and bonded insurance? any suggestions?

There's no such thing as bonded insurance.

For contractors, there's insurance - general liability and workers compensation, to cover if you cause damage or injury to someone else. It protects YOU, put pays someone else who would sue you for something you're negligent about (NOT faulty workmanship, though).

Then there are bonds. A bond is a guarantee from the insurance company, that you'll do something, and the guarantee is to ONE specific someone else. It does NOT carry over. The guarantee could be, that you'll pay the subcontractors on a specific job. Or, it could be that you'll finish the job by a certain date. But you have to buy a bond for EACH job. Then, if you don't meet the conditions of the bond, the insurance company pays out the predetermined penalty amount.

Insurance is your protection against accidents. They happen, and the insurance company expects some claims. Bonds are guarantees. The insurance do NOT expect claims. Be prepared to have to personally guarantee (and have the finances to back it up) any penalty amounts you're required to have.

Insurance for your construction business would include coverages like Property Insurance, General Liability, Auto Liability, Workers Compensation, Tool Floaters & Installation Floaters. These coverages can often be purchased in a single package policy.

Bonds are a diffferent matter alltohether. There are three basic types of contract surety bonds:

The bid bond assures that the bid has been submitted in good faith and that the contractor will enter into the contract at the price bid and provide the required performance and payment bonds.
The performance bond protects the owner from financial loss should the contractor fail to perform the contract in accordance with its terms and conditions.
The payment bond assures that the contractor will pay specified subcontractors, laborers, and material suppliers on the project.

If you just started your construction business chances are you will not take jobs that require the above bonds because these types of bonds are not required for small to medium size jobs.

It's not until you start taking on "jumbo" construction jobs that bonds become a requirement. On these larger projects you might need a bid bond before you are even allowed to submit a bid.

Bonds are not insurance and should not be referred to as "bonded insurance". It is not insurance because if your insurer has to pay out the bond penalty they will seek reimbursement from you.