All posts by Hazel Rodriquez

All About Contractor License Bonds

Contractor Bonding

Construction contractors require being either licensed or registered with their local authorities or state. This process often needs a contractor license bond. A contractor license bond can be described as a kind of surety bond, i.e., an agreement between 3 parties: surety (the bond provider), the obligee (this is the entity that needs bond such as a state) and the principal who is the contractor. A contractor license bond acts as a form of guarantee that the contractor will comply with every regulation that is imposed by the respective local authority. It is concerned with the general compliance with statutes of a license. In other words, it is a surety line of credit for business. It provides additional protection for your clients that you will diligently fulfill your work.


Before a surety issues a contractor with a license bond, through scrutiny is conducted on your business and financials to ascertain that you can successfully fulfill your obligations.

This means that if a contractor fails to comply with the regulations resulting in damage to any party covered by the bond, then a claim can be legally filed. If the contractor’s actions are determined to e unlawful, the surety covers the immediate costs but up to the penal sum of the license bond. It should be noted that the contractor will be required to reimburse the money soon after by the indemnity agreement which, constitutes the bonding process.

Contractor bond cost

The cost of contractor license bond is normally in the range of 0.75%-2.5% of the entire amount. However, the percentage amount is a factor of business and personal status, i.e., business experience, financial statements and credit score. Construction contractors with excellent overall conditions pay less compared to those bad credit.

Also, each local authority and state has varying requirements about the bond amount.

How to decrease contractor bonding cost

There are some effective techniques for reducing the contractor bond cost; these include the following:

Credit score – The credit score ought to be high for one to pay low amounts.

Overall financial status – It is good and advisable to showcase good liquidity and strong financial statements.

Provider – Select a good surety bond provider.

Who requires it

A contractor license bond may be required from Home improvement contractors, Carpenters, Roofers, Electricians, Plumbers, HVAC contractors and General Contractors.


Contractors who have breached the agreement of the contractor bond can face a claim as earlier mentioned. This may be due to non-compliance with local regulations or state regulations, failure to declare taxes and pay them, use of fraudulent business methods, etc.

It should be noted that bond language, as well as forms, vary depending on location. If a claim is made, there are several actions that can be sought such as out-of-court settlement and it is the most highly recommended. Alternatively, the matter can be taken to court for settlement.

Unfortunately, if the court case is lost, then you will be forced to compensate the claimant financially up to the whole penal sum of the bond.

The above insightful information outlines in detail all about contractor license bonds, knowledge of such is important for those in the business as ignorance is no excuse.…

How Can Your General Liability Insurance Cover Your Hired Auto For Construction?

In California, most of the construction business owners are well aware of the concept of auto insurance, and thus they always look for a good GLI product that can give them auto insurance coverage too. With this, they can easily avoid the big expenses that can arise due to the accident in the workplace. Starting from the vehicle repair cost to medical expenses of the victim, you can pay off everything from the insurance coverage itself. But what if you have vehicles that you have hired form a different source and not belong to your company? If your non-owned or hired vehicle meets with an accident in the workplace, then who will pay the cost of the repair or the medical expenses of the victim? Certainly, your conventional auto insurance not covers these expenses. This is the reason for this kind of cases you have to take the help of the non-owned auto coverage from your general liability insurance company.

Include hired auto coverage in your GLI bonds                                    

There is no guarantee that when your employees use their vehicle or hired vehicle for your business work, then they will not meet with an accident. If it happens, then you have to face big expenses to compensate for the damages to the vehicle or for the medical expenses of the victim which will eventually eat up a larger part of your business capital. This is the reason now every construction business company adds the auto coverage for hired and non-owned auto clause to their general insurance bonds.

If you add this clause to your GLI bond then in the event of an accident with your hired vehicle for construction job your general insurance can take the responsibility to pay off the charges. Though it is true that for that you have to shell out a more money but on the other hand with this step, you can easily save your company form big losses. By asking your general insurance provides you can add this auto coverage to your policy and work at peace.

How Can SEO Help A General Liability Insurance Company?

When it comes to doing business online, then you have to give serious thought to your SEO projects. As only with the help of it your site can deliver excellent results for you. Moreover, to make your website a better one converts your leads, you should have good SEO campaign in place. Hence taking the SEO is utmost important for any good business house. Be it an insurance company selling general liability insurance to the construction professionals or a contractor willing to fetch more clientele for his company SEO is the need of the hour for all of them. In case of an insurance company, it is more important to have good SEO as other than selling their products they also need to maintain their reputation online so that people can have faith in them.

  • Managing ORM: online reputation management or ORM matters a lot in these days as with this you can upkeep the brand name of the company and establish a strong presence in the market too.
  • Get more exposure: in internet marketing more visibility means more customers and a scope to earn more revenue as well. So when you have good SEO campaign for your company then only you can expect to get exposure and reach to your clients easily.
  • Strengthening local business: before going to the bigger market, you have to enhance your local business. This can be the foundation of any business. It is imperative to mention that when you take the help of local SEO, then only people from your neighborhood can find you quickly and want to business with you.
  • Getting more clients: you can even get more clients with the help of lead generation and affiliate marketing efforts which are an integral part of SEO. So simultaneously you can grow your business in the local and national market easily.
  • Affordable insurance plans: with SEO and online platform you can curb the cost of selling your insurance products, so ideally you will be in a position to sell products in much cheaper cost, which will increase your revenue and also give client cost saving too.