Amarillo, Texas requires many of the different contractor licenses to purchase a surety bond before a license can be issued.
And if this is the first contractor license you're getting or your first one in Amarillo, surety bonds may be a new concept for you.
And that's why in this short article, you'll learn:
- What this contractor surety bond is
- What are the bond amount and pricing
- How to purchase your bond and save money
What is the Amarillo Contractor Surety Bond Requirement?
A surety bond is a special type of insurance you purchase for the protection of your customers.
Think of it like a legal contract of trust between two parties that have never worked together before.
Your customers hire you with the expectation that you won't purposefully commit fraud against them, costing them money.
So again, the surety bond is used by the City of Amarillo to hold contractors accountable to their customers and the laws regulating contractors in Amarillo.
Each contractor bond has an amount set by the Building Safety Division.
Let's get into these bond amounts next.
What Are The City of Amarillo Contractor Bond Amounts?
What's The Purpose of the Bond Amount?
The bond amount is kind of like coverage, but it's actually considered a penalty.
Here's how that works.
If a licensed contractor purposefully commits fraud the customer can make a claim against their surety bond for the financial damages.
If the claim is deemed legitimate, the surety bond will pay out to the customer. You now must pay the insurance company that underwrote your surety bond back the amount of the claim.
That's why it's considered a penalty. It's the penalty for fraud.
Any one claim or the sum of multiple claims are capped by the bond amount. That is important.
What Are The Bond Amounts
About half of the licensing classifications require a surety bond to complete the licensing process.
Here are the licenses and their bond amount.
- Residential remodeling
- Building demolition
- Insulation
- Landscape irrigator or technician
- House mover
- Commercial roofer
- Residential roofer
- Non-electrical sign installer
- Swimming pool/spa contractor
- Water treatment equipment installer'
- TABLE
General Liability Insurance Requirements
Some of the licenses require general liability insurance. General liability insurance is a more traditional insurance policy you purchase for you and your businesses' protection.
General liability for contractors protects your business if a customer is accidentally injured by your business while on the job site or customer's property.
Here are the minimum required amounts for the licenses with a requirement.
| License Classification | Minimum General Liability |
|---|---|
| Electrical | Minimum state requirement |
| Glass and Glazing | $500,000 |
| HVAC | Minimum state requirement |
| Insulation | $300,000 |
| Plumbing | Minimum state requirement |
| Commercial Roofing | $1,000,000 |
| Residential Roofing | $300,000 |
| Sign Contractor - Electrical | Minimum state requirement |
How Much Does an Amarillo Contractor Bond Cost?
The good news is all of these contractor license bonds are instantly priced once we get your business information. Unfortunately I can't list the exact pricing on a per license basis, however the highest price at the time of this post was $250 for a roofing license.
- $100 minimum
- Most of the time the pricing is 1%
- Sometimes the pricing is 0.5%
We can get you exact pricing in only a few minutes, just request a price quote using our online form or call a bond specialist at 1-800-608-9950.
How Long Do You Have To Have Your City of Amarillo Contractor Bond?
Once you get your pricing and pay the bond premium, we will work to issue your bond within the day.
The good news for you is the City of Amarillo will accept a generic bond so preparing your bond will be fast.
Once it's ready we will email you a copy of the bond.
When you submit your application, you'll do so through their online MGO permitting software.
Because of this it is likely you'll be able to e-sign the bond so you can submit it.
Keeping Your Bond Active
As long as you're actively working in the city, you will have to keep this bond active. Keeping it active means paying the renewal premium during its renewal premium.
For the City of Amarillo, you're required to renew your bond 12 months from the effective date you choose when you purchase your bond.
The effective date is the date your bond becomes active.
Besides getting the lowest price possible for your bond, another great reason to use Surety Bonds Direct is we manage your bond for you.
As your renewal date approaches, your bond specialist will email and call you 30 days before to remind you that your expiration is approaching. They will be ready to help you renew it so your bond remains active.
If you're getting licensed in other Texas cities, click to learn about their bonding requirements:
- City of Forth Worth right of way bonds
- City of El Paso contractor bond requirements
- City of San Antonio contractor bond requirements
When You're Ready To Get You're Surety Bond We're Ready to Help
I hope you understand the surety bond requirement.
Remember, it's a tool used by the City of Amarillo to keep you and all licensed contractors accountable to the laws in the city and state, and your customers.
If you're ready to purchase your City of Amarillo contractor surety bond today, click here and fill out our quote form. Just tell us which license classification you're getting.
You can also call a bond specialist at 1-800-608-9950 and they will help you get pricing over the phone.
