A contractor bond is required in most states. The contractor’s bond must be issued by an insurance carrier admitted by the State where you are licensed. The insurance company that issues any surety bond will be referred to as the “surety company” or “bond company” as the contractor you are the Principal, the surety bond company as the Obligor, and the CSLB as the Obligee.
The surety company will provide the regulatory agency a guarantee (the surety bond) that vendors, customers, suppliers, and employees of a licensed contractor will receive payment for financial damages due to a violation of a Contractor License Law amounting to several thousands of dollars depending on your state (“penal sum” or “bond amount”).
A license bond is used to obtain or maintain your contractor license. A license bond is required in most states, and is your guarantee that you won’t violate any state law regulations.
You can get a license bond as low as $70, but the price goes up depending on personal credit, license history and the classification of the contractor.
Unlicensed contractors do not carry contractor bonds and in result consumers do not receive protection from the bond insurance requirements. Every year the regulatory agencies receive thousands of complaints regarding unlicensed contractors, don’t be a part of that statistic!
Also known as a contract bond, performance bonds are required by law for any public construction projects. Contractor performance bonds ensure you’ll follow through on your end of a contract and complete construction in the time and manner agreed upon.
These types of bonds are required for prequalifying a contractor and providing assurance that you are properly vetted to perform the work they wish to undertake. This also provides financial protection to the obligee should the contractor default on its contractual obligation, at the same time ensuring that the contract will be performed properly and that laborers and suppliers will be paid for their work and the materials provided.
This type of bond is for project-specific surety between a principal and an obligee. Contract bonds cost between 2.5% and 3% of the contract amount and this rate is based on the financial stability, experience, and proven reputation of the contractor as well as project details.
To qualify for this type of bond, contractors will need to provide information to the surety company to demonstrate their ability to complete the contract as expected. The information requested varies depending on the type of work that will be performed and the size of the contract.
The process of the contract bond goes as follows, letter of bondability, bid bond, performance/payment bond then project completion.
Bid bonds keep the bidding process fair for everyone by guaranteeing that the successful bidder will enter the contract and provide the required contract bonds.
When you are in the bidding process of a project, there may be a listed requirement to include a bid bond with your submitted bid documents. This type of bond provides financial assurance that if you submit a bid, if awarded the contract, will enter into a formal contract with the owner and post a performance and payment bond if required.
Once you have been awarded the contract (hooray!) the project owner (obligee) will include all the requirements they expect for performance (written within a contract) and or a payment bond. The performance bond is a surety providing a credit line guaranteeing the performance of work as specified by the contract. A payment bond guarantees payment to labor suppliers and material providers.
Payment bonds are a type of contract bond required by law for any work on public projects. Contractor payment bonds work to protect subcontractors, day laborers, and materials suppliers against non-payment.
If you're running a contracting service, you most likely currently know how easily things can go wrong. From broken equipment to injured employees, and everything in between, building and construction is a hazardous industry where accidents happen every day. Being so, there are few things more vital to your contracting company than insurance that will cover you totally when hard times fall. So if you're trying to find the best possible license bond in Louisville, KY, you’ve arrived - put your company in the capable hands of Pascal Burke Insurance Brokerage today!
General liability insurance gives you the peace-of-mind that your business assets are protected against risks or unforeseen events.
If one of your employees is injured or becomes ill as a result of their job, worker’s comp benefits cover the costs of getting them well.
Whether you’ve got a work truck or an entire fleet, contractor commercial auto can protect your vehicles from the risks of the road.
This is a legal obligation that guarantees you'll perform your work according to your contract while adhering to the regulations of your license.
Extend your insurance, so you are covered in case a client requires higher liability insurance or protect against a high-dollar incident or claim.
Protect your hard-working assets from common risks like: theft and damage, as you transport them to and from your worksite.
Protect your unfinished building from theft, fire damage, structural damage and vandalism before you have the certificate of occupancy.
This covers either all risks or specific sources of losses for materials or equipment specifically named in the policy.
Roofing contractors face higher risks and are exposed to unique losses that differ from most other trades. Check out how we can help.
Coverage of damage to contractor’s own buildings, office contents, and most other personal property that it owns.
Many contracting insurance brokers have business diplomas and briefcases - they might understand the stats, however they don't have the facts. When you select Pascal Burke Insurance Brokerage, Inc., you're drawing from decades of experience in the building and construction industry. Having been in the field ourselves, we know your insurance needs like the back of our hands - hands that are still calloused from the work you do everyday. Some things just can't be taught - they must be lived. So, if you want insurance coverage brokers who'll treat your company as they would their own, we're the ones for you. Let's build something.
In 1974, our founder and president Pascal Burke began his career in construction as an architect’s apprentice, but his heart was in building so he joined a large concrete company, building parking structures and sports stadiums, After a few years he began his own construction company specializing in parking structures until 2005, he then joined the board of directors of an insurance company that specialized in contractors general liability. After 4 years, he began Pascal Burke Insurance Brokerage, Inc. Since this beginning we have specialized in contractors’ insurance and are licensed in over 40 states. We truly know contractors from the ground up!
Named after King Louis XVI of France, Louisville was founded in 1778 by George Rogers Clark, making it one of the oldest cities west of the AppalachiansWith nearby Falls of the Ohio as the only major obstruction to river traffic between the upper Ohio River and the Gulf of Mexico, the settlement first grew as a portage site. It was the founding city of the Louisville and Nashville Railroad, which grew into a 6,000-mile (9,700 km) system across 13 states.
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