When you are a contractor, license bonds are an unavoidable part of your business. If you plan on having your license issued, renewed, reactivated, or maintained, then you are going to need a license bond.
License bonds are an agreement with a surety company that you will work according to certain regulations and adhere to contractor license laws.
Why Contractors Need License Bonds
A contractor bond protects you, the agency or company who has hired you, and the company who issued the bond. If you fail to meet the terms of your bond, the agency (or company) who hired you can make a claim on the contractor bond for compensation of any damages.
The surety company who issued the bond and pays on the claim will then expect you to repay the amount of the claim. Contractors who are properly licensed and bonded will get more opportunities for better jobs because of the guarantee that a contractor license bond provides.
In California, contractor license bonds are required by law. The Contractors State License Board will suspend your contractor license if you try and work without a bond. Your bond must be written by a surety company licensed through the California Department of Insurance.
How to Get a Contractor Bond Fast
When you are a contractor in business for yourself, time is money. You need to get your bond, and you want it fast. Luckily, we can issue you a bond instantly. Here’s how it works.
To get a contractor license bond, you will submit an application which includes your contractor license number or license application fee number.
Your bond amount is determined by your personal credit. For contractors with excellent credit, the annual premium amount of their bond can range between 1% and 3% of the bond amount.
A lower credit score may result in an annual premiums ranging between 5% and 15% of the bond amount. In California, the contractor license bond requirement is being raised from $12,500 to $15,000 effective January 1, 2016.
Once you’ve applied, you will get an instant and accurate quote for your license bond.
Submitting a payment will issue your bond instantly, and Hunter will automatically report your bond to the Contractors State License Board on your behalf. The entire process, from application to quote to bond issued will take less than two minutes.
After Your Bond is Issued
Got bonded? Great! Here are some other things you should know about your license bond.
- Your bond will stay in effect until the CSLB is notified by your surety company of a cancellation.
- You may only have one bond in effect at one time.
- Your bond belongs to you, and your license, alone. It is not transferrable.
- Failure to maintain continuous bond coverage will result in suspension of your license and even disciplinary action against you by the CSLB.
- Renew your bond promptly to avoid suspension.
Having a valid contractor's license, necessary bonds, and adequate insurance makes you a desirable candidate for projects large and small. Agencies, companies, and private individuals will be more inclined to work with you because of the professionalism and guarantee that you are covered if something goes wrong. Be sure to let prospective clients know that you are bonded, licensed, and insured. If you have work lined up and are waiting for a bond to get started, don’t wait a second longer. Get your contractor license bond instantly, and you can get to work.