Two Reasons To Get A Contractor Bond

If you are on the fence about whether you should get a contractor bond or not, then you may not have all the information you need. Do you know how contractor bonds work? Do you know what industries they work best for? Do you know the limitations of what they cover and the powerful leverage in funds they offer? These are all questions you should answer for yourself in detail. I will offer some limited info on them in these few words, but spend some time with a qualified bond agent and learn all you need to.

First, contractor bonds are essentially a line of credit extended to you, but for the protection of the customer. If you mess up, the contractor bond company comes in and cleans up your mess. You then have to pay back the contractor bond company (which is why having good credit has always been so important in the bond industry). Simple, huh? So the first way a contractor bond makes you money is that it shows you as both professional and prepared in the eyes of your client. They are going to hire you rather than some yahoo showing up without one.

The second way is that it softens the risk liability you are exposed to. While you still have to pay the contractor bond company, it is them you owe instead of the client. Owing a client money because of some screw up is a really bad ideal.