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Louisiana Contractors License Bond?

If you're planning to get a Louisiana contractors license, plan to get a Louisiana contractors license bond too. It's mandatory. It's also an important resource for a contracting business - one that can work in your favor or in the opposite direction. The team at Viking Bond Service has created this guide to help you fully understand the surety bond you must get as part of the Louisiana contractors license requirements

What is a Louisiana Contractors License Bond?

This type of surety bond holds the bonded party - eg. the contractor - financially responsible if he or she violates Louisiana state laws and ethical standards applicable to contractors. When that happens, anyone harmed by a contractor's actions may file a claim against the Louisiana contractor bond seeking damages equal to whatever loss they experience as a result of the contractor. As long as the claim for damages proves valid after investigation, the surety agency backing the bond immediately pays the claim in full, guaranteeing the injured parties receive a settlement. After settling, however, the surety focuses on collecting the amount of the settlement from the bonded contractor, who has financial responsibility for any and all claims the surety pays. In that way, surety bonds also guarantee that bad contractors get held accountable.

Why Do I Need a Louisiana Contractor License Bond?

The Louisiana State Licensing Board for Contractors includes a surety bond among the Louisiana contractors license requirements for two reasons. One, it's an effective way to keep unscrupulous contractors out of the industry because they will have a harder time securing a bond, and by extension, a license. Second, surety bonds hold contractors financially liable for their mistakes and provide a path to recoup financial losses for anyone affected by bad contactors. You need a Louisiana contractors license bond because regulators see it as an effective way to regulate a large and sensitive industry in the state.

What Do Contractor License Bonds Protect Against?

Make no mistake: These surety bonds do not protect the bonded party, the contactor. They hold the contractor accountable. Louisiana contractor license bonds protect the people who hire contractors and protect against things like dangerous workmanship or using lesser quality materials than agreed upon.

How Much Does a Louisiana Contractors License Bond Cost?

Surety bond costs (called premiums) are customized to the applicant. The amount depends on the size of the bond the contactors is applying for - the cost is a small percentage of that total. It also depends on the credit score of the applicant - the higher the score the lower the cost. If you're worried that a bad credit score (below 700) or a blemish on your financial record (like a bankruptcy) could hurt your chances of getting a bond, partner with Viking Bond Service. Our bad credit surety bond program is designed to help more Louisiana contractors get approved for the surety bond they need for their license.

How to Get a Contractor License Bond in Louisiana

Applicants will need to complete a standard bond application, submit to a credit check, and turn over any other documentation the surety agency asks for. When you apply for a Louisiana contractor bond with Viking Bond Service, you can get a quote in as little as 24 hours. Once you have the quote, you simply need to pay the premium price to activate the bond. The surety will provide documentation proving you have an active bond that you will then need to submit with your contractor's license application.

How To Renew An Existing Louisiana Contractor License Bond

If you don't renew your surety bond every 12 months, it will lapse and your license will lapse with it. There are strict penalties - from fines to worse - for operating as a contractor without a license. Therefore, you need to plan for the renewal process. The surety will run a new credit check and recalculate the premium price based on any changes to your creditworthiness. If your credit improved over the previous 12 months, your bond price will be lower. But the opposite can also happen - your credit declines then your price increases. Either way, be sure to budget for the renewal cost.

Why you should get your Contractor License Bond from Viking Bond Service

We work with countless contractors across the state of Louisiana. What makes us a preferred surety bond partner? We simplify and streamline the bonding process until it's fast and affordable for more people. Getting the bond your business needs doesn't have to stress you out when Viking Bond Service is on your side.

Get a Free Quote for a Louisiana Contractor License Bond Today!

A free quote doesn't obligate you to do or pay anything. Get yours today by filling out the form here. We are also happy to provide more information first. Contact us at 1-888-278-7389 with all your questions.

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