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Contractor Bonds in CaliforniaContractor bonds are generally required by California state law and are really just a line of credit to protect a contractor’s specific clients and the public. For more information and details about contractor bonds and they type and what you’re required to have, call on the professionals at California Contractors Insurance. We’re a company which specializes in the types of contractor bonds and/or contractors insurance needed for the peace of mind protection your business needs and requires to comply California law. These assurances allow you to work a job site focusing solely on what you do best, and not worrying about other entanglements.

Contractor Bonding Agency Near Me In California

At California Contractors Insurance, we have a stable of contractors insurance agents who excel and specialize with the types of insurance (or in this case, contractor bonds) necessary to work as an independent contractor in California . Local, state and federal law sets certain requirements and criteria to be met and these types of financial obligations can be difficult to understand. So let our experts help you with the type of contractor bonds or contractor insurance you need to do what you do best. Each of our contractor bonds experts is highly skilled, trained and certified, so you know we’ll work tirelessly for you.

Free Contractor Bond Quote – (888) 728-4034

Since you’re here, it’s likely you’re interested in or require contractor bonds for your independent contractor business. So call on us here at California Contractors Insurance. Call us today at (888) 728-4034 and a friendly and knowledgeable associate will answer any of your questions and you can request a free, no-obligation quote right now.

More About Contractor Bonds

Find Out More on How Contractor Bonds Work

A contractor bond in California is a type of a surety bond that is meant to cover the contractor, the client and the state bond providing agency. In essence, the contractor bond is a type of performance bond that supplies legal and monetary cover for the three entities mentioned.

This bond is meant to apply throughout the construction job’s duration. A contractor is obliged by law to protect a professionals’ bond from the state’s licensing agency, and it typically serves to make sure that the contractor remains within the required laws that guarantee professionalism.

Parties Involved in Contractor Bonds

As stated, the contractor bond in California will cover three entities that have an interest in the job: the contractor, the client and the state agency that provided the bond.

As for the contractor in California, the bond is meant to ensure that they remain within the confines of principles and professionalism throughout the life of the job. If there are dishonest decisions that will impact any concerned party, the aggrieved party can file for compensation against the bond. The aggrieved party, in this case, could be the client, the agency that provided the bond or both.

Performance bonds are a normal requirement for specific state or federal projects which can be quite delicate due to their public nature.

Besides requiring that the contractor follow particular requirements referring to the job, the contractor bonds also guarantee that the contractor will pay all their employees, providers and subcontractors.

Is It A Kind Of Insurance Coverage?

A contractor bond is more of a line of credit rather than an insurance policy. It is not a real insurance plan though. It is a legal contract between the contractor, client, and agency issuing the bond.

Most states require that upon getting certified, the contractors will also have to get a surety bond against a premium. The bond will put conditions on the contractor, and the conditions will be in line with the state and federal laws that cover construction projects. The bond will also specify actions that are considered as violations of the laws on constructions.

Hence, if the contractor is in violation of the bond, then a claim will be made against the premium that was paid to secure the bond. This is why it is better viewed as a line of credit rather than a type of insurance.

In Case Of Violation

California Contractor BondsOn the occasion that the contractor breaches the agreement, examinations will be done by the surety agency. If they conclude that the claim is legitimate, then the plaintiff will be compensated up to the full amount of the bond.

Therefore, the contractor will be forced to pay back the surety for the amount that it has extended to the claimant. The contractor will, therefore, bear the financial burden of the breach of contract. The contractor stays responsible for their obligations despite the fact that it is the surety who covers the claims.

A Rule of Law

Contractor bonds hence are put in place to ensure that the contractor meets all ethical procedures and requirements. It also guarantees that professionalism is maintained at all times throughout the life of the task.

This bond protects the customer, as well as making the process of construction transparent. While it places the burden on the contractor, it also ensures that only legally professional contractors remain in business, extracting unwanted competition from cowboy professionals.

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