What is a Contractor License Bond?
To get your contractor license in your state, county, or state, you're required to purchase a contractor license bond. Some counties, cities, even townships may require a bond for contractor registrations.
But what is a bonded contractor? Why is it required? How much does a bond cost? And how long will it take to get? That is what you'll learn in this short video.
Video Timestamps:
- 00:24 - Video agenda
- 00:36 - Why is a contractor license bond required?
- 01:42 - 7 must know facts about contractor bonds
- 02:04 - Contractor license bond fact 1
- 02:11 - Contractor license bond fact 2
- 02:15 - Contractor license bond fact 3
- 02:22 - Contractor license bond fact 4
- 02:29 - Contractor license bond fact 5
- 02:36 - Contractor license bond fact 6
- 02:44 - Contractor license bond fact 7
- 02:58 - How much does a contractor bond cost?
- 04:19 - Cost example 1
- 04:26 - Cost example 2
- 04:42 - What to do once you purchase your bond
- 05:16 - Video recap
The 3 Steps To Get Your Alabama Roofing License Application Submitted
Getting an Alabama roofing license only requires 3 main steps. Let's go through these so you can get your application submitted correctly the first time.
How Much Does a Contractor License Bond Cost?
Probably $100 to $500
Some contractor license bonds we sell are as low as $50.
But the price of the bond you need is going to depend on a two factors:
- The state or city you're getting licensed in
- The bond amount you need
Which Price Is Will You Pay?
1. Instant Issue Bonds
It's possible the license bond you need can be purchased with a low instant price.
If this is the case, you can purchase it today and have your bond issued within hours.
Examples of states that have instant purchase bonds are:
And there are a lot more.
2. You Have To Get a Custom Quote
Most contractor license bonds require a custom quote from a surety.
A surety is a special insurance company that chooses to underwrite surety bonds.
3 Factors That Change Your Price
The surety is going to look at 3 factors to determine your price:
- Factor 1 -- The personal credit of the owner or owners
- Factor 2 -- Contracting and industry experience
- Factor 3 -- Claims against past bonds if you're been licensed before.
The rate the surety quotes multiplied by the bond amount is your price.
Do You Want To Potentially Save Hundreds of Dollars?
Every surety is going to use their own standards when quoting a rate.
This means rates will be different.
And finding a lower rate can save you hundreds or dollars.
That's what we do!
We find our contracting clients the lowest possible price by working with multiple sureties.
We'll price shop for you and find you the lowest rate.
It costs you nothing to have us price shop for you. This is FREE information you can use to get your application process done fast.
Ready To Find Out How Much Money You Can Save?
Let's look at example pricing so you can see how big of a difference a lower rate can make.
We'll use a $50,000 bond amount as an example.
| Bond Amount | Custom Rate | Title Bond Cost |
|---|---|---|
| $50,000 | 0.05% | $250 |
| $50,000 | 1% | $500 |
| $50,000 | 1.5% | $750 |
| $50,000 | 2% | $1,000 |
Let's Make Sure You Don't Pay Too Much
It takes one minute to request your quote.
Our bond specialists will hit the phones and start collecting rates from the best sureties.
And once all quotes have come back in, you'll get an email with the lowest price we can get.
You're don't have to purchase the bond.
But at least you have the information so you can make the right decision for you.
Can't find what you're looking for? Let us help!
Get Started » or, if you'd prefer, call us at
(No obligation, takes 2 minutes)
