What does a policy cover? Bonded & insured?

[Marian Smith]

If you hire a contractor who is bonded and insured through a policy issued by a local insurance agency, what is covered?..... in the instance that money was drawn during phase 2 and less than a month later the contractor has a stroke and cannot talk (and maybe not think too clearly) ? The family says there is no existing poa or signature authorized on the contractors account to refund the draw. Also, there really isn't a clear detailed account of what has been done or not done and at what price/cost....the bid just had lump sum phases except for insulation and drywall which were going to be subbed out. But it looks like not enough work has been done for the amount drawn to date....and new bids are much higher.