Starting a contracting business involves much more than just advertising and licensing. Before any work can begin every contractor needs to make certain, they are fully insured and licensed. contractors license bonds in Phoenix are an additional form of insurance that is designed to protect the customer. They are required before a company is allowed to bid on municipal and large commercial contracts and many homeowners and small business owners will only work with bonded contractors. In many states, contractors are required to be bonded before they can receive their license. A contractor bond is not the only type of bond that is needed for performing some contracted work, but a basic bond is something that every contractor needs. In order to purchase this protection, the business owner will need to contact a bond service.
Applying for a bond is a straightforward process that requires the contractor to complete an application. They need to supply all of their business information including the business address and any license numbers. A background check and credit report is performed and a quote for the annual premium cost is given. Contractors who have little credit or bad credit are still eligible for this protection, but may face higher rates for their coverage.
A bond is not a replacement for other types of insurance, but additional protection that reassures customers of the professionalism of the contractor they have hired. If a claim is made against the bond, it is paid by the company issuing the bond, but the contractor is required to reimburse the company for their loss. Failing to do so will prevent the contractor from having bond coverage in the future and could prevent the contractor from finding work.
Contractors License Bonds in Phoenix are only for use on work completed in Arizona. In order to perform work in other states, it is necessary to obtain bonds specific to those states. Bond companies are able to issue bonds for other states, but will require proof of licensing in those states at the time of the application. Check out website name to learn more about the many bonds that are available and to get an instant online quote.