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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California contractors are perhaps more familiar with American Contractors Indemnity than any other surety in California when it comes to contractors license bonding and for good reason. American Contractors Indemnity has quite possibly underwritten more California contractor license bonds over the past few years than […]
The promotion of a contractors business should be a top priority for all California construction professionals looking to grow their enterprise. However, to maintain compliance with Contractors State License Board regulations, contractors in California should become familiar with acceptable advertising guidelines prior to engaging in any […]
