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What is a Contractor License Bond?


What is a Contractor License Bond?

A contractor license surety bond is a type of insurance you're required to purchase as a guarantee that you will:

  • Fulfill your promises and complete all jobs according to the contract
  • Bid appropriately on projects
  • Pay subcontractors for work they complete for you
  • Follow all state, county, and/or municipal building codes and regulations

Typically a contractor surety bond is required to get your contractor license issued at a state level.

However, not every state has a state level contractor license. Many counties, municipalities, and townships may have their own:

  • License bonding requirements
  • Permit bonding requirements

In this case, we'll focus on the contractor license bond.

 

Why Are You Required To Purchase a Contractor License Bond?

Most states have a state level licensing requirement.

And like we mentioned, many counties and municipalities have their own independent requirements.

Even though contractors are required go through a rigorous licensing process, there will always be a handful of licensed contractors who financially harm their customers on a purpose to make more money.

Acts of misconduct or fraud can include:

  • Breaking the terms of a construction project
  • Taking deposits or down payments and never starting or completing a project
  • Replacing agreed upon materials with cheaper alternatives to increase profits
  • Failing to pay subcontractors for completed work
  • Neglecting building codes and purposefully performing poor quality work

It's because of these "fraudulent contractors" that your licensing agency requires every contractors to purchase a surety bond before performing work or starting a project.

Request a FREE Price Quote Today

Let us price shop for you and find the lowest possible price. This costs you nothing and there's no obligation to buy once you get pricing.

Need Help? Call Us Today

Talk to a bond specialist today. They will help you find the surety bond you need and get you the lowest possible price. 1-800-608-9950

 

How Can You Save Money Buying a Contractor Bond?

The price (or premium) of a contractor bond is determined by a surety.

A surety is an insurance company that underwrites surety bonds. (FYI - not all insurance companies provide surety bonds.)

Every surety does their own assessment when providing a price for a contractor bond.

This means prices will be different from one surety to the next.

Getting the lowest price can save you hundreds - even thousands - of dollars.

 

How Is Price Determined?

For contractor bonds, the surety will consider:

  • Credit of the owner or owners
  • Industry and business experience
  • The history of customer claims against contractors in your state

Because the price quoted by each surety will be different, using a specialized surety agency like Surety Bonds Direct will help you save money.

In some cases we have already secured low fixed prices - with no credit check - for the bond you need.

Click on your state and you'll find the bond you need.

 

How to Potentially Save Hundreds of Dollars

We work with our network of proven, A-rated sureties to price shop for you and find the lowest possible price.

The best part is, you're under no obligation to purchase once we find you pricing.

You have nothing to lose to have us get you pricing and see how low of a price you can get.

We've saved our customers hundreds of dollars when purchasing their auto dealer bond.

The money you save can be used to pay:

  • Application fees
  • Examination fees
  • Additional insurance costs like liability insurance
  • Other fees or costs to get your business up and running
Request a FREE Price Quote Today

Let us price shop for you and find the lowest possible price. This costs you nothing and there's no obligation to buy once you get pricing.

Need Help? Call Us Today

Talk to a bond specialist today. They will help you find the surety bond you need and get you the lowest possible price. 1-800-608-9950

 

Purchasing a Contractor Bond Is Easy

If you agree to the low price we'll found you, purchasing your auto dealer bond is as easy as completing an online checkout form.

After a successful purchase, our issuance team will:

  • Prepare the correct bond form
  • Collect the necessary signature
  • Ensure the seals are in place
  • And provide the power of attorney

Some contractor bonds must be physically mailed to you so you can turn in the original bond with your application.

Most contractor bonds can be emailed to you so you can submit a copy of the bond with your application.

 

Let Us Manage This Process For You And Save You Money!

If this is your first time purchasing a contractor license bond, this process may be new to you.

Let's us manage everything for you so:

  • You do not overpay for your auto dealer bond
  • You can get the process done quickly and correctly

Click here and choose your state to get started.

If you're not sure of the bond you need, fill out our free online quote form and provide as many details as you can.

Our system will find the bond you require or a bond specialist will call you can help you get this process done.

Request a FREE Price Quote Today

Let us price shop for you and find the lowest possible price. This costs you nothing and there's no obligation to buy once you get pricing.

Need Help? Call Us Today

Talk to a bond specialist today. They will help you find the surety bond you need and get you the lowest possible price. 1-800-608-9950

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