Contractor Bonds Made Easy

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What are contractor bonds?

A contractor bond is a specific type of surety bond that offers financial security to both government agencies and consumers. Contractor license bonds functions as a three-party contract guaranteeing contractors will follow the laws set for a specific jurisdiction. When it comes to contractor license bonds, the three parties involved include:

The Principal

the construction professional or firm purchasing the contractor surety bond to guarantee that licensing regulations will be fulfilled appropriately

The Obligee

the government agency, e.g., a contractor licensing board, requiring the contractor bond

The Surety

the insurance company executing the bond, which provides a financial guarantee that the contractor will adhere to licensing regulations

Bond Cost

Contractor liceense bond pricing can be broked down into 2 categories:

Instant Approval - these bonds are quoted and purchased online through ContractorBonds.com. No credit check is required and everyone pays the same price.
Underwritten - the cost of these bonds is determined by the insurance company on the basis of 3 primary factors; personal financial credentials, contractor’s work experience and the level of the risk the bond guarantees. The underwriter will review the principal’s information to determine a final cost. Contractors deemed as financially stable by the underwriter will typically pay 1-3% of the bond amount, while construction professionals perceived as risky can pay up to 10% of the bond amount.

Regardless, there are no additional fees when purchasing a construction bond through ContractorBonds.com. The lowest price we receive from our network of insurance companies is the price you pay.

Bond Coverage

Although contractor bonds are a type of surety bond, they should not be confused with typical insurance policies. Whereas most insurance offers protection to the policyholder, surety bonds protect consumers and government entities. Contractor surety bonds guarantee harmed parties have a way to collect compensation in case a contractor's actions result in financial loss.

So if a construction professional violates their contractual obligation resulting in a claim against the contractor license bond, the contractor will be held accountable for paying the claim.

Who are we?

ContractorBonds.com was built to make the process of getting a construction surety bond as straightforward and convenient as possible.

As the construction division of SuretyBonds.com, the leading surety bond agency in the U.S., we have the knowledge and cutting-edge tools to deliver unparalleled customer service.