Nebraska Contractor License Bond
A career as a Nebraska contractor takes a few things: sturdy boots, a tool belt, and a Nebraska contractor license bond. You will need to get one of these surety bonds as a requirement for getting a license in some places. And without a license, you can't work legally. Meeting the surety bond requirements couldn't be more important. Read on to learn more as we everything about them.
How Does a Nebraska Contractor's License Bond Work?
A bond makes a contractor liable for illegal or unethical behavior that results in financial damages for their clients. When someone suffers a loss due to an unscrupulous contractor, they can file a claim against the surety bond for compensation. The company that backs the bond will conduct an investigation to prove whether the claim has merit.
Provided it does, the contractor who caused the claim must pay for it under the terms of the surety bond agreement. However, if the contractor does not pay, the surety guarantees immediate payment in full to the claimant. Valid claims will always receive a settlement, either from the contractor or the surety.
In cases where the surety pays the settlement, the contractor must pay back that same amount (plus interest and fees). The person with the Nebraska contractor's license bond has the final liability for all claims, and the surety can use whatever legal means necessary to collect the debt.
Nebraska Contractor's License Bond Requirements
The requirements vary depending on where you are working and what type of work you are doing. For example, plumbing contractors need a $10,000 bond to work in Omaha, but plumbing contractors in other places may not need a bond at all. Check with state and local that handle contractor licensing in Nebraska about the latest bonding requirements - and count on Viking Bond Service to help you meet them all.
Why Are Nebraska Contractor's License Bonds Required?
By making a contractor responsible for misconduct, bonds create a strong incentive to follow the law and perform upstanding services. Should a contractor fall short of that standard, bonds also provide a streamlined way for people to seek justice and get compensation compared to going through the courts. All surety bond types, including this one, protect one party from the risk of trusting another party. This is why they are common in the construction industry as part of getting a license and getting work. All Nebraska contractors should prepare to get well acquainted with surety bonds.
How to Get a Contractor's License Bond in Nebraska
Step one is finding a surety agency like Viking Bond Service to streamline the application process and get multiple bond offers. After that, applying for a bond takes just a few steps:
- Complete a standard bond application
- Undergo a credit check
- Provide supporting documents (only when necessary)
The surety will give you a quote for the cost of the surety bond. Pay the premium to activate coverage for a set term so you can get documentation proving you have the required coverage.
The Cost of a Contractor License Bond in Nebraska
Expect to pay a small percentage of the required coverage limit. The amount will be less or more depending on your credit. Bad credit can make it harder to get a bond at a fair rate or get approved for a bond at all. That's why Viking Bond Service created a special program designed specifically for people with credit issues.
How Long Does a Nebraska Contractor's License Bond Last?
Terms typically last 12 months. Nebraska contractors must have an active bond to keep their license active, which means renewing that bond annually. The surety will examine credit changes since the last renewal and raise or lower the premium accordingly. Contractors should budget for the renewal costs and work on their credit to keep those costs as low as possible.
Get Nebraska Contractor License Bonds From Viking Bond Service
Meet your Nebraska contractor license bond requirements the easy way – with Viking Bond Service. Once you request a quote, we can get you a competitive offer in under 24 hours. If you have questions at any point, our team is here to help. Contact us or speak to a bond expert directly at 1-888-2-SURETY (1-888-278-7389).
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