Contractor’s License Bond
Contractor Bonds
What is the Purpose of This Bond?
A Contractor’s License Bond is required for the issuance of an active license, reactivation of a license, and for the maintenance of an actively renewed license. The bond is filed for the benefit of consumers who may be damaged as a result of defective construction or other license violations, and for the benefit of employees who have not been paid wages that are due to them.
Low Rates ($93.75 and up based on credit)
Usually Issued Regardless of Credit
Contractors Disciplinary Bond Available Regardless of Credit
Document Downloads
Application: Call underwriter for appropriate application at 1-818-715-7133
Contractor License Bond FAQs
We understand that you might need more information before you invest in a contractor bond. In the section below, you will find answers to some of the commonly asked questions about these bonds.
What is a contractor license bond, and how does it work?
A contractor licensing bond is a type of surety bond that government agencies require to ensure that licensed contractors follow state laws and meet their contractual responsibilities. These bonds are often obtained as part of the licensing process.
It acts as a safeguard, ensuring that the contractor will conduct business responsibly, in accordance with industry laws, and in accordance with their contractual obligations to contractors customers.
To obtain a contractor license surety bond, a contractor will need to work with a reliable surety company. In the event that the contractor fails to meet the regulatory or contractual requirements, the relevant party can file a claim against the contractor license bond to obtain compensation.
Why are contractor license bonds required?
As a requirement for practicing a particular trade in a certain area, government licensing organizations such as local or state contractor licensing boards frequently ask contractors to secure a license bond.
What does a contractor license bond cost?
The price you pay for a contractor’s license bond will depend on a number of factors. This includes:
- The bond amount
- Local licensing requirements
- The applicant’s credit history
To learn more about the cost of contractors’ license bonds, please get in touch with us or fill out the quote form at the bottom of this page.
Is a local contractor license bond the same thing as insurance?
No. Contractor license bonds are not insurance policies. They are a type of surety bond that protects clients and others who might face financial consequences because of a contractor’s actions by ensuring compliance with legislation and contractual commitments.
Insurance offers protection against accidents, theft, and other unforeseen events. You’ll need to approach an insurance company to get a policy.
A contractor’s bond is handled by a surety company and offers coverage for financial losses that result from a contractor’s failure to meet certain regulatory laws or the specifications of a contract.
Why should I choose S Philips Surety & Insurance Services, Inc. as my surety company?
Whether you’re looking for a bond for a contractor’s license or another kind of bond, you can rest assured that S Philips Surety & Insurance Services, Inc. can assist. With a proven track record and four decades of experience in the area of surety bonds, you can count on us to ensure a fuss-free experience.
How long does this type of surety bond remain in effect?
The length of a contractor license bond is determined by the rules set out by the relevant licensing body. Some bonds are only effective for one year and must be renewed, but others have longer validity periods.
What other surety bonds do you offer?
In addition to contractor license bonds, we also offer various construction bonds, such as public works bonds and payment bonds. Browse our website or contact us to learn more or to find a construction bond that best meets your needs.
Can construction contractors practice without a contractor license bond?
The truth is that every state will have its own laws that regulate the licensing of contractors, and many often have to acquire a contractor license bond if they want to practice their trade. It’s important that you check what laws apply in your own state to determine whether you will need this kind of surety bond.
What happens when a contractor fails to meet the requirements of the bond?
In the event that the contractor doesn’t abide by the specified rules and laws, the client can file a claim against the bond to obtain financial compensation for any resultant damages. This is why it is important that contractors familiarize themselves with these requirements to avoid this.
Do you need a contractor’s state license bond? S Philips Surety & Insurance Services, Inc. is a trusted surety company with four decades of industry experience. You can count on us to assist! Get in touch with us or fill out the quote form below for more information.
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