What Are the Benefits of A California Contractors License Bond?
The act of purchasing a CSLB Bond is not only beneficial, it is also mandatory. Bonds need to be in place for the protection of both the contractor as well as the consumer. This serves as insurance that will protect everyone involved should something go awry. Everyone with a contractor’s license will need to have a bond in order to keep their license active.
Bonds need to be purchased according to the services provided. Most contractors will need a general contractor bond, while roofing and pool contractors will need the specific bond that applies to these trades. The cost of each bond will be dependent on the type. The minimum bond requirement at this time is $12,500. This amount is typically adjusted upward periodically as determined by the contractor’s state license board. It is possible to purchase a larger amount if you wish. Many consumers feel comfortable working with those who maintain larger bond amounts.
Bonding & insurance services are available to all contractors, and the process of receiving a bond is now easier than ever. The proper forms can be downloaded, and pricing quotes are now available online. Bonds can be purchased for a term of one or more years. Advanced years purchased is one of the best ways to ensure that there are no lapses in coverage. Lapses can result in the license being revoked, which can certainly be problematic.