For construction professionals, a Contractor License Bond surety bond is required in most states in order to build, repair, or renovate any public or private structure.

1. LICENSE BOND

2. IS A CONTRACTOR LICENSE BOND?
If you are just getting started as a contractor, then you need to
obtain a license and permit bond to be licensed by the city, state,
and county.
This license is important in showing the local government and the
public that you are prepared to be responsible for any project that
you do in the area.
A contractors license surety bond is a guarantee to potential
clients that they will be protected against fraud and poor
workmanship on their construction projects.

3. Each state has its rules regarding license bonds
for contractors.
If you plan to work in different states, you may
also need to obtain a contractors license surety
bond for each state, county, or city that you
work in.

4. IT PROTECT YOUR BUSINESS?
The contractors license surety bond is for the protection of
the client, such as a homeowner or project developer.
This is a guarantee to the public that you will perform the agreed
upon work that is outlined in the contract and that you will
provide quality workmanship.
If you fail to do so, then the client will have the opportunity to
file a claim against the bond.

5. IT PROTECT YOUR BUSINESS?
As the principal in the bond agreement, you will be responsible
for repaying the amount that is paid out to the obligee, the
client.
The surety company is not going to absorb the money that is paid
out. They will look for you to reimburse them.
If their claim is found to be valid, then payment will be made so
that they can get the work completed.

6. DOES THIS BOND COST?
For a contractors license surety bond, you will need to pay a
percentage of the bond amount.
This will be determined by the credit rating of the contractor and
other factors.

7. https://suretybondauthority.com/contractors-license-bond/
800-333-7800
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