Contractor Bonds

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Contractor’s License Bond

There is various types ofbonds, and licence bonds. The most common bonds are the Contractor Licence / Permit bonds needed to get a Licence in your State. Unlike other types of contractor insurance, bonds are designed to guarantee contractor integrity, quality performance, and financial responsibility. Bonds also ensure compliance with a contract and especially laws formatted by the state in which operation is undergone.

For any business intending to insure an active license, reactivation of a license or for the maintenance of an actively renewed license must obtain a contractor’s bond.  A contractor’s bond must be filed with the state department of insurance in the state which issued the business license for a particular business through a licensed surety company.  The contractor’s bond is filed and designed for the protection of the consumer who may potentially be damaged as a result of defective construction or any unforeseen license violations, and to protect employees from loss of wages due for work completed.

The California Department of insurance lists the requirements for a contractor’s bond as such:

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