Any contractor that has purchased a contractors license bond in California has signed an indemnity agreement as part of the bonding process, but how many have taken the time to carefully read what it entails? While often misunderstood, a California contractors license bond indemnity agreement is […]
In just a few years, Suretec has emerged as one of the top providers of California contractor license bonds in the state by providing highly competitive rates and great service. While many surety’s have abandoned the contractors license bond arena in California following the collapse […]
For many aspiring contractors still navigating the licensing process, becoming bonded to satisfy CSLB guidelines can seem like a confusing process as its likely the first surety bond they’ve ever had to purchase. […]
Many contractors will be surprised to learn that a California contractors license bond is not for their own benefit, rather, it’s to protect their customers and employees from a contractor’s harmful actions such as faulty workmanship or unpaid wages. […]
Contractors entertaining the idea of illegally operating without a license in California should think twice as it’s perhaps the worst occupational decision one can make for several reasons. In addition to stiff criminal & financial penalties, unlicensed contractors also have no legal right to enforce […]
A contractor’s license bond can be valid for as little as one year or as many as five years depending on the surety. California contractors with good credit usually have an opportunity to purchase a license bond with a term of several years, while those with poor or marginal credit generally are not offered bond terms greater than one year. It’s important to note that whether a bond has a term of one year or several years, all contractors must re-qualify for a new bond when their current bond expires. When this occurs, contractors often experience large premium fluctuations both up and down as compared to their prior bond due to changes in their credit profile or other rating factors. This raises the question as to when it’s most advantageous for a contractor to purchase a bond for a single year, or opt for a multi-year option if available. Below is a short summary of the pros and cons of each option.
When to Purchase a License Bond for Multiple Years?
Pros
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