Contractor License Bonds
CONTRACTOR LICENSE BONDS
“A man’s word is his bond.” Well that used to be true, but not today. Now days it’s “put your money where your mouth
is.”
A bond is a promise to pay.
Your Contractor’s license bond is guarantying your clients that if they file a valid claim against you at least $12,500 is in
place to cover it. That’s the State of California requirement. As of yet the state doesn't require general liability
insurance, so the public’s only protection is knowing you have a up to date Contractor’s license and a bond to back it
up.
Because a contractor must pay back the bonding company for any claims it pays out, the bonding company, otherwise
known as a Surety, needs to know that the contractor is good for the money. For that reason most bonding companies
do a credit check on the contractor before issuing the bond. Good credit gets good rates, average credit pays slightly
higher rates, while those with poor or bad credit get hit with very high rates and may even have to put down some
collateral to get a bond. But it’s not just your credit that affects the rate you pay. If there are any court judgments, tax
liens, or claims against your bond, the rate goes up. If you have any unpaid child support or alimony, your rate goes up.
Even if you have unpaid traffic tickets, it may effect you.
There are a few Sureties that will sell bonds without a credit check, but they will check public records.
If you are having trouble getting good bond rates and don’t know why, have a look at your credit reports and make sure
the information is correct. If not, take steps to fix the mistakes. If your credit report is good, there may be open public
records. You’ll need to check with you local county recorder’s office to find that information. For example: sometimes
a person may have had a tax lien or back child support issue, and have since cleared the problem up. That doesn't’t
mean that any public records are then closed. You may have to take steps to have whoever filed the record remove it
once your obligation is cleared up. They won’t always do that automatically.
For a quote on a contractor’s license bond please complete the attached bond request form, Complete and mail or fax
it back to us, or simply call us with the information. click here for bond request form
To check your credit report, go to the following web page. By law, you are allowed one free credit report per year.
www.annualcreditreport.com
“A man’s word is his bond.” Well that used to be true, but not today. Now days it’s “put your money where your mouth
is.”
A bond is a promise to pay.
Your Contractor’s license bond is guarantying your clients that if they file a valid claim against you at least $12,500 is in
place to cover it. That’s the State of California requirement. As of yet the state doesn't require general liability
insurance, so the public’s only protection is knowing you have a up to date Contractor’s license and a bond to back it
up.
Because a contractor must pay back the bonding company for any claims it pays out, the bonding company, otherwise
known as a Surety, needs to know that the contractor is good for the money. For that reason most bonding companies
do a credit check on the contractor before issuing the bond. Good credit gets good rates, average credit pays slightly
higher rates, while those with poor or bad credit get hit with very high rates and may even have to put down some
collateral to get a bond. But it’s not just your credit that affects the rate you pay. If there are any court judgments, tax
liens, or claims against your bond, the rate goes up. If you have any unpaid child support or alimony, your rate goes up.
Even if you have unpaid traffic tickets, it may effect you.
There are a few Sureties that will sell bonds without a credit check, but they will check public records.
If you are having trouble getting good bond rates and don’t know why, have a look at your credit reports and make sure
the information is correct. If not, take steps to fix the mistakes. If your credit report is good, there may be open public
records. You’ll need to check with you local county recorder’s office to find that information. For example: sometimes
a person may have had a tax lien or back child support issue, and have since cleared the problem up. That doesn't’t
mean that any public records are then closed. You may have to take steps to have whoever filed the record remove it
once your obligation is cleared up. They won’t always do that automatically.
For a quote on a contractor’s license bond please complete the attached bond request form, Complete and mail or fax
it back to us, or simply call us with the information. click here for bond request form
To check your credit report, go to the following web page. By law, you are allowed one free credit report per year.
www.annualcreditreport.com
C Wong Insurance Agency
license # 0B96625
(800) 388-0074
FAX: 707-644-6272
license # 0B96625
(800) 388-0074
FAX: 707-644-6272
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For Contract, Bid, Performance, Labor & Material and other types of Bonds,
please call our office at (800) 388-0074 for details.
please call our office at (800) 388-0074 for details.