Not only can the right contractor bonds instill confidence in your clients while protecting their projects, they are also required by state law. However, the cost associated with contractor’s bonds varies depending on a number of factors, like the state where you’re operating, the size of the project, and your credit score. If you want to get the best rate on a bond that’s customized for your project, it’s important to work with an expert who will craft the right bond on your behalf.
DJM Insurance specializes in the construction industry, so we know how to create the right bond for every job.
We work with industry-leading providers on behalf of contractors just like you to find the best rates according to your credit history. We cut through the confusion to provide contractor’s bonds with affordable rates that help you demonstrate your trustworthiness, responsibility, and commitment to get the job done.
Why choose DJM for Contractor License Bonds?
The right Contractor License Bond can put your client’s mind at ease while protecting you both from costly damages that could derail your construction project and your business. At DJM Insurance, we pride ourselves on being different from other contractor insurance companies. We offer the highest caliber of Contractor License Bonds so both you and your client are protected for greater peace of mind.
Other reasons why DJM is different from so many other insurance companies include:
- Competitive Quotes
- Free Estimates
- Personalized Insurance Services
- Unlimited Support For Policy Holders
- Your Satisfaction is Our Top Priority
- Dozens of Industry Providers to Choose From
Everything you need to know
Have questions about Contractor License Bonds?
We’re here to help you get the right insurance policy for your needs and your budget. Below are some common questions we often answer about Contractor License Bonds, but don’t hesitate to contact us to answer specific questions about the Contractor License Bonds we offer.
What kind of bond does a contractor need?
Contractors are required to have a Contractor License Bond. This bond acts as a pledge on the part of the contractor to comply with all local and state regulations when protecting clients from financial loss. Other bonds a contractor may need in order to begin work include a bid performance bond, a payment bond, a maintenance bond, and more, depending on the type of work being done, local regulations, and requests from the client.
How much does a contractor’s bond cost?
In California, contractors must post a surety bond, but amounts can vary depending on the type of work being done. The bond amount is always higher than the actual cost of the bond, and the payout amount depends on the type of work being done. Contractors with great credit can pay as little as one percent of the bond total, with most contractors paying between two and five percent of the bond amount.
What is the difference between bonded and insured?
Insurance involves a blanket policy that protects your business in the event of an accident. A bond, on the other hand, protects a particular project and guarantees it will be executed properly.
The biggest difference between insurance and a bond is that in the event of a claim you don’t have to pay back an insurance claim, but you do have to repay a bond claim. The surety will pay out the claim, then come back to you to get their money back.
What is a payment bond on a construction project?
Payment bonds guarantee that subcontractors and material suppliers will be paid when the project is complete. They are required by the Federal Government, so they are offered in conjunction with other bonds, like contractor license bonds and bid performance bonds.
How does a contractor’s bond work?
First, the contractor completing the work obtains a bond. Once the project is complete, the bond agent is notified and the bond line is freed. If the job wasn’t completed properly, the client can request the funds of the bond and use them to pay another contractor to finish the job.
How can we help you?
Let’s talk about your insurance needs. Connect with our team of experts to answer any questions and find the insurance that is right for you.
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