Contractor 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 Lakewood 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 Specialists Near Me In Lakewood 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 Lakewood CA 90711. 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.
Learn More on How Contractor Bonds Work
A contractor bond in Lakewood is a type of a surety bond that is meant to cover the contractor, the customer and the state bond providing agency. In essence, the contractor bond is a kind of performance bond that offers legal and monetary cover for the 3 entities mentioned.
This bond is meant to apply throughout the construction project’s duration. A contractor is required by law to secure a contractors’ bond from the state’s licensing agency, and it typically serves to ensure that the contractor stays within the required laws that guarantee professionalism.
Parties Associated With Contractor Bonds
As mentioned, the contractor bond in Lakewood CA will cover 3 entities that have an interest in the job: the contractor, the customer and the state agency that issued the bond.
As for the contractor in Lakewood, the bond is meant to ensure that they stay within the boundaries of ethics and professionalism throughout the life of the task. If there are unethical choices 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.
Efficiency bonds are a typical requirement for specific state or federal jobs 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 ensure that the contractor will pay all their staff members, suppliers and subcontractors.
Is It A Type Of Insurance Coverage?
A contractor bond is more of a credit line instead of an insurance policy. It is not an actual insurance policy though. It is a legal arrangement between the contractor, client, and agency providing the bond.
The majority of states require that upon getting certified, the specialists will also have to get a surety bond against a premium. The bond will place conditions on the contractor, and the conditions will be in line with the state and federal laws that cover construction jobs. The bond will also specify actions that are thought about as violations of the laws on building and constructions.
Hence, if the contractor is in violation of the bond, then a claim will be made against the premium that was paid to protect the bond. This is why it is better viewed as a credit line rather than a kind of insurance.
In Case Of Violation
In the event that the contractor violates the agreement, investigations 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 repay the surety for the amount that it has extended to the complainant. The contractor will, therefore, bear the monetary burden of the breach of contract. The contractor stays responsible for their responsibilities despite the fact that it is the surety who covers the claims.
A Rule of Law
Contractor bonds therefore are put in place to ensure that the contractor meets all ethical procedures and requirements. It also makes sure that professionalism is maintained at all times throughout the life of the task.
This bond protects the client, as well as making the process of construction transparent. While it puts the burden on the contractor, it also ensures that only legitimately professional contractors stay in business, removing undesirable competitors from cowboy contractors.