Nevada Contractor License Bond
Before getting a Nevada contractor license, you need to get a surety bond called a Nevada contractor license bond. The bonding process is simple, and the bond itself is less expensive than expected. But it's vital to understand how everything works. Here's a simple rundown of surety bonds in Nevada for contractors.
How Does a Nevada Contractor License Bond Work?
All surety bond types make the bondholder financially liable for any damages they cause to another party. A Nevada contractors bond is a legally binding agreement between three parties:
- Principal – The contractor required to get the bond. The principal must pay for any claims filed by the obligee against the surety bond.
- Obligee – The party that suffers financial losses due to illegal or unethical behavior on the part of the principal. The obligee can file claims against the bond seeking compensation equal to the damages.
- Surety – The company that underwrites the bond. The surety will settle claims with the obligee in the event that the principal can't or won't settle, but the principal must promptly repay that debt to the surety. Failure to repay could lead to lawsuits, loss of bond coverage, and the inability to meet future Nevada contractor license bond requirements.
Who Needs a Nevada Contractor License Bond?
All Nevada contractors need a license that requires a surety bond as one of the qualifications. Nevada separates contractors into three categories that each have unique license and bonding requirements:
- Class A – General Engineering Contractors
- Class B – General Building Contractors
- Class C – Speciality Contractors
Every contractor in Nevada needs a surety bond, and they can all rely on Viking Bond Service to get it.
How to Get a Nevada Contractor License Bond
The good news is that getting a Nevada contractor license bond is quick and simple:
- Complete a surety bond application
- Agree to undergo a credit check
- Provide additional documents as necessary
The surety will then quote the cost of the surety bond based on the application materials. Coverage kicks in as soon as the premium is paid, at which point the surety provides documentation proving the surety bond requirement has been met.
How Much Does a Nevada Contractor License Bond Cost?
The amount of coverage a Nevada contractor bond requires varies depending on the type of contractor and their financial history. Coverage requirements vary widely. The cost is a small percentage of the coverage requirement based on the bond seeker's credit. If bad credit makes it harder to get approved for a Nevada contractor bond at a fair rate, check out a special program offered by Viking Bond Service.
Nevada Contractor License Bonds From Viking Bond Service
Get your career as a contractor off on the right foot – make Viking Bond Service your bond partner. How much would your bond cost? Get a quote in under 24 hours! Have questions? Contact us or call 1-888-2-SURETY (1-888-278-7389).
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