In order to become a licensed contractor, not only will you need to fulfill your state’s training and educational requirements, but you’ll also likely have to purchase liability insurance. Nearly every state requires some type of general liability insurance for contractors — some states even additionally require you to have contractor bonds — before they can begin … [Read more...]

A surety bond is an agreement between three parties concerning insurance for other people. The bond is only used when you fail to follow rules or regulations and includes: A principle: the party that needs the bond; An obligee: the party that is protected by the bond; A surety: the party that issues the bond. General contractors typically … [Read more...]

Bonds are three-party contracts between guarantors (individuals, such as contractors), obligees (the entity requiring the bond), and bonding companies. Determining whether you need to get bonded, as well as for what purposes and for how much, depends on the nature of your work and the region you’ll be working in. In order to be licensed as a contractor in most states, … [Read more...]

Bond insurance is a risk mitigation tool commonly used in general contracting and similar fields. Also known as “financial guaranty insurance,” bond insurance guarantees the repayment of the principal and all associated interest payments to bondholders in the event that a payment is defaulted by the issuer.   Clients typically want to see that contractors and other … [Read more...]

When you start a business, you want to take preventative and precautionary measures to ensure that you are also protecting your business. Dually, you will also want to ensure that you are protecting your customers. Becoming bonded and insured (if required) is the best way for businesses to go about this. 1. Check if You Need to Become Bonded The first step towards getting … [Read more...]