What is a Contractors Bond?
A contractors bond, also known as a home improvement contractor bond, guarantees that a construction contractor and his or her company will complete the job they promised in an efficient and professional manner.
Additionally, a contractor’s bond prevents construction companies from quitting a project and protects home and business owners from expenses incurred if a construction project fails. Finally, a contractor’s bond ensures that home and business owners do not have to pay supply and other costs associated with a construction project.
How Does a Contractor Bonding and Insurance Company Protect Contractors?
If you are unfamiliar with contractor’s bonds or bonding and insurance companies, you may think contractor’s bonds only protect construction clients. However, contractor’s bonds protect construction companies in many ways as well. For instance, a bonded and insured construction company is often more attractive to home and business owners. If your company carries one, you are more likely to be hired for projects and more likely to receive positive feedback once those projects are complete.
In addition, a contractor’s bonding and insurance company like Smith Bond and Surety can protect your company from common mistakes, such as making frivolous bids or taking on the wrong type of project. For example, if your construction company is new, you may be tempted to bid too low to win the contract for a project. A bonding and insurance company can give you advice on how to determine the best bids for various projects. They can also help you choose the projects that will get you the most bids and positive feedback. For instance, your company may be proficient in kitchen projects, but not full kitchen renovations. A contractor’s bond, and the company that provides it, will protect you from taking on an unfamiliar project and potentially running afoul of bond regulations.
How Do I Obtain a Contractor Bond?
The type of contractor bond you need depends on your projects and the laws of your state. If you need a specific type of bond or have questions regarding bonds, please call or email Smith Bond and Surety. We will help you get the bond and insurance you need.