A contractor license bond is used to reassure prospective clients that they are not liable to pay for damages on the job. It is also an important prerequisite to obtaining a contractor’s license because the underlying assumption is that you will be complying with all of a state’s laws and regulations at work.
Keep reading for more on the significance of this surety bond.
A bond keeps you in line. No one wants to hire an unlicensed and unbonded contractor because there’s no guarantee their work will be secure.
When you obtain a bond, you agree to follow set regulations, such as paying taxes, obeying safety and labor laws, refraining from misinformation, and abiding by the contract all the way through.
Moreover, you are relieving your clients of being financially responsible in case you end up hurting yourself on their property. Fail these, and you risk losing your license.
By being a bonded contractor, you are obligated to finish work before the deadline. This not only adds to your credibility in the contracting and construction industry but also enables you to take on more projects than you otherwise would. More projects mean more income, which is always a welcome sight.
All contractors follow an agreement, but the way they do so is different for a licensed and an unlicensed contractor. As the former, you have to closely follow the terms of service and be better prepared and stocked for the job.
A license bond will ensure you are proactive in bringing in the materials and equipment needed for a project to avoid last-minute shortages and guarantee customer satisfaction.
You can’t be a bad contractor and not expect your clients to file a claim against your bond. A well-informed client will always choose you, a bonded and licensed contractor, over an unbonded one because they know they have the power to strip you of your license and get amply compensated were you to abandon the job, fall ill without a replacement, go bankrupt, or give them any other valid reason to hold you accountable.
Trustworthiness is the subtext to being a bonded contractor because the alternative is just too bleak to be entertained.
How to Obtain a Contractor Bond in Los Angeles
Applying for surety bonds in Los Angeles and all across the 50 states is much easier now. All you have to do is fill out this application form, and we’ll produce the bond for you in no time.
If you’re confused between contract and contractor bonds and don’t know which one to get, our insurance agents will help you make the right choice. Similarly, they will assist you in selecting the bond for your needs, be it an auto dealer bond, car wash bond, or a custom bond.
You need only call or leave a message to get the process started.