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CONTRACTOR LISCENSE BOND
By: William Kelley, Thu May 20th, 2010
License bonding is a guarantee to consumers that those they contract or do business with will adhere to the laws and restrictions of the business for which the license is issued. For the most part, potential customers recognize the licensing and bonding as an inducement when picking a business or professional. Everyone has heard the horror stories and wants to do all they can to avoid potential costly and dangerous problems. When someone wants to hire a contractor for new construction on personal or commercial property, potential customers will see a contractor license bond as adding to the legitimacy of a particular contracting business.
Contractors are often required to post a contractors surety bond to guarantee a license for a state or local government. A contractor’s license bond is most always required to enter into a bidding process, especially for any state funded development job. Like most other surety bonds, contractor bonds act to protect consumers from financial loss should work be unsatisfactory, unfinished, or not comply with local codes. Contractor license bonds are issued by the surety company, and the process requires a credit history as well as business and personal financial statements. Premiums renew and are paid yearly. Rates will vary from state to state and for individual applicants. Typically, license bonds premiums are a small percentage of the actual bond amount, for example a California Contractors License Bond is $12,500 and the premium may be as low as $116 annually. There are also programs for companies suffering from bad credit. There are markets available that understand that there may be extenuating circumstances, and they are taking other factors into consideration to assist those struggling with the challenging economy.
Surety 1, Surety Solutions Insurance Services, Inc. has been a leader in the industry since 2003. Surety 1 has written hundreds of Contractor License Bonds nationwide and is well equipped to help with license bonding or any sort of surety bonding you require. They can help with the regulations from state to state and will always provide competitive pricing. Surety 1 can facilitate clients with credit problems and locate markets for those left out due to credit problems. Contact Surety 1, for an online application, and free quote. Staffed by a cadre of appropriately diverse, experienced agents, Surety 1 offers help online or by phone. The website provides information on the various kinds of surety and fidelity bonds available; the help you need now.
