Georgia Contractor's License Bond
Every contractor in Georgia, residential or commercial, needs to have a license. In some cases, they will also need to have a Georgia contractor's license bond. When a bond is required, someone must show proof of bond coverage before being granted a license. They will lose their license and the right to work legally if they lose their bond coverage. That makes surety bonds very important for many Georgia contractors.
How Does a Georgia Contractor's License Bond Work?
If the contractor with the surety bond (the principal) does something illegal that causes financial losses for a client, the surety bond holds them accountable. The party that suffered damages (the obligee) can file a claim with the bond company (the surety) seeking compensation equal to their losses. Provided a claim holds up under investigation, the contractor must pay for it. However, if the contractor doesn't pay, the surety will settle with the obligee. Nevertheless, liability still rests with the contractor, who must repay the surety (with interest and fees).
Georgia Contractor's License Bond Requirements
The surety bond requirements depend on the type of work a contractor does and where they do it. All residential and general contractors in the state will need a $25,000 surety bond, and water well diggers will need one with $20,000 in coverage. Some municipalities require surety bonds as well.
How to Get a Georgia Contractor's License Bond
It takes less than a day to get a quote for the cost of a surety bond, and coverage starts as soon as the premium is paid. The surety needs just a few things before providing a quote:
- A completed bond application
- Permission to run a credit check
- Additional documents as needed (i.e., financial statements and bond requirements)
The Cost of a Georgia Contractor's License Bond
Bond costs are different for each bond seeker. They are based on someone's credit score, financial history, and, when available, business and bonding background. Expect to pay a small percentage of the coverage amount, with premiums climbing higher as credit standing goes lower. Rely on the bad credit surety bond program from Viking Bond Service to get a fair evaluation and competitive rate regardless of credit.
How Long Does a Georgia Contractor License Bond Last?
Bonds last for 12 months. If bond coverage lapses, a contractor's license becomes invalid, making it essential to track the renewal date and budget for the renewal cost. That cost may be higher or lower than before based on any changes to credit since the last renewal.
Viking Bond Service: Your Source for Georgia Contractor License Bonds
Since surety bonds are a tool of the trade for many Georgia contractors, it pays to have a long-term bond partner. Find out why so many contractors choose Viking Bond Service. Our team is here to answer all your questions when you contact us or call 1-888-2-SURETY (1-888-278-7389). Alternatively, request a quote at any time, and you can get a bond almost immediately.
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