Contractors Bond

The amount currently set by the Contractors State License Board for this bond is $15,000. This is required to keep your license active for the protection of the consumers. Who can file a claim on this bond? A lot of contractors mistake this insurance as protection for themselves but only homeowners/clients, subcontractors or suppliers can file a claim and use the $15,000 bond amount. This bond is a promise from the contractor to perform the work according to contract and complete the project. If not, a claim can be filed, the insurance company will then cancel your bond and inform the Board, and your license will be suspended until you pay the bond company back and reinstate your bond.

Worker’s Compensation

This is required if you have any employees, full-time or part-time. Be careful in how you operate. If someone gets hurt on the job, even if they only work for you for a few days, you are liable for them. Protect your assets and maintain proper insurance. You can exclude executive individuals from the policy and lessen the amount you’re paying. Confirm the details with your broker. Otherwise, you can file an exemption with the Contractors State License Board. 

General Liability

This is not required by the Contractors Board to maintain your license unless you are an LLC. This is, however, the insurance that is to your benefit as a contractor. You can use this insurance to cover you in the event of property damage, bodily injury (not for an employee), personal and advertising injury, and damage to premises rented to you.

BID / Performance / Payment Bond

When completing a bid packet for the city, county,school district, or other large clients, you may encounter terms such as bonding capacity, bonding limits, or rate. These terms refer to a Performance and Payment Bond.

You can prequalify for $400,000 based on a credit check only, no financials required. Call us for more information.

 

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