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
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How Much Does a Contractor License Bond Cost?
Click here if you don't know what a contractor bond is.
The price of a contractor bond is determined by a surety.
A surety is an insurance company that specifically underwrites surety bonds. (Not all insurance companies provide surety bonds.)
Every surety does their own - independent - assessment when providing a rate for a surety bond.
This means every surety's rate - and price - will be different.
And this is how you'll be able to save hundreds of dollars when purchasing the bond you need.
How is a Contractor Bond Price Determined?
Surety Bonds Direct is a specialized surety agency. We work with a proprietary network of A-rated sureties.
This allows us to price shop for our customers and deliver the lowest possible price.
There are two types of contractor license bonds:
- Instant issue
- Custom quote
Instant Issue Bonds
Surety Bonds Direct has secured low fixed prices for a variety of contractor bonds with no credit check.
This means you can purchase your bond today and likely have it issued during the same day.
To find out if the contractor bond you need is instant issue, click here and then click on your state for a list of your state's contractor bonds.
Custom Quote Bonds
Most contractor bonds require a custom rate, quoted by a surety.
This rate is based on:
- Credit of the owner or owners
- Industry and contracting experience of the business
- Prior bond claims if there are any from owners who've been licensed in the past
- Plus the overall landscape of the contracting industry in the state
The rate multiplied by the bond amount is the price you pay.
And because each surety conducts their own independent assessment, the rates they quote can be drastically different.
We've helped contractors save over $400 purchasing their bond.
This is money you can use and 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 contractor 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 find you, purchasing your surety 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.
Most contractor bonds can be emailed to you so you can submit a copy of the bond.
Let Us Manage This Process For You And Save Your Money!
If this is your first time purchasing a contractor bond, the concept may be new to you.
Let's us manage the process for you so:
- You do not overpay for your surety bond
- Get the process done quickly and correctly
If you know the bond you need, click here and choose your state to get started.
If you're unsure of the bond you need, fill out our free online quote form and provide as much 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 contractor bond you need and get you the lowest possible price. 1-800-608-9950
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