Contractor License Bonds

Why You Are Here:
You are probably here because you're thinking about getting your contractor’s license or need to renew your businesses general liability and license bond... You are in the right place!

Who We Are:
Orange Insurance specializes in all aspects of residential and commercial construction and the trades. We can offer you many options for contractor's bonds. We can also help to find you an inexpensive general liability insurance policy.

New business ventures as well as existing companies will find our service invaluable… We will quote your bond with multiple surety companies, enabling us to find the best coverage and lowest rates possible! And best of all, we work with over 200 carriers – so you know we're searching high and low for you.

What Do I Need?:
Before you obtain or renew your license, there are two things you need, a State Contractor License Bond and General Liability Insurance. This article discusses what they are and why you need them.

Before you become a licensed contractor, you will need to post a State Contractor License Bond with the state you are working in (If you have jobs in multiple states you will need a bond for each state you work in). You will also need General Liability Insurance specific to the construction industry and your specific trade or trades.

What Is A State Contractor's License Bond?:
A Contractor’s bond is a three-party agreement between a surety company (this is who we get your bond from), the contractor (you) and the project/property owner or client. The bond binds the contractor to the terms and conditions of a contract and assures the owner that the work will be done to state laws which may regulate the construction industry and trades. If the contractor has not performed to the contract's specifications, the surety may compensate the client as needed up to the amount of the bond.

Contractor’s license bonds as well as bid, performance and payment bonds are all rated on your business history and personal credit worthiness.

As a contractor, you want to assure your client that you are a reputable firm. Obtaining a construction bond is of great reassurance to many people when considering who to hire to work on their homes or buildings. A bond can also guarantee that you are paying your suppliers and subcontractors.

The Bond – this protects your client:
The state license surety bond itself is an agreement between you (the principal), the state or your client (the obligee) and the issuer of the bond (the surety). You are agreeing to completely perform work in accordance with local laws, in a legal manner for your clients, as well as pay your subs and suppliers per the contract. The surety is guaranteeing that you will do this, and has agreed to pay your client should you fail to do so.

This guarantee protects your clients should you fail to perform to the local laws and statues that govern your trades, if you violate building codes, if you abandon the job, or if you cause a lien to be placed on the client’s property and do not arrange to have removed. It also protects your suppliers and subcontractors if you do not pay them. As this is an extension of credit, should the surety have to make a payout against the bond, it has the right to recover the amount paid from you.

The requirements and amounts of the license bonds will vary from state to state and in some cases from city to city. We have a great deal of knowledge in this industry and will make sure that you are getting the correct bond to make sure you are bonded in accordance with local laws.

The General Liability Insurance – this protects you:
Subject to the limitations in the policy, this provides coverage for incidents involving your work that results in bodily injury or property damage, as well as personal and advertising injury. Should any of these incidents result in you being sued, you will also be provided with legal counsel to represent you in court even if the accusations in the suit are groundless and have no merit.

In The End:
We know this all seems like a burden, but the owner of Orange Insurance was a general contractor himself, and he recalls that one of the first questions when submitting a bid on a construction project was, “Are you bonded and insured?”… There was never a red-faced moment where he had to say “ummm, no”… He always held his head high and said “Yes, of course we are", and on top of that he was always happy to tell the client, "we will also add you as an additional insured to our policy for extra peace of mind”. This not only confirmed to the project owner that he was certified and in good standing with the state, but if something did go wrong, there was coverage in place to rectify any issues.

90% of our clients are tradespeople, drywallers, electricians, roofers, carpenters and artisans in the business of building, developing and general contracting. We understand your business and we speak your language. We use our knowledge of your business and work with over 200 insurance carriers to find the right coverage for you at the right price.

In many cases, we can bond and insure you the same day! And if further help is needed, our advisors can help guide you (at no charge) through setting up your business with the state.

Working with Orange Insurance enables us to assess your entire company risk profile, making sure that you are covered from all sides, including license bonds and insurance.

We have financing available and accept credit cards as well.

Email us here or call today so that we can give you all the options at the right price so you can get your contractor’s license and start working!