Virginia Contractor License Bonds
Anyone seeking a Class A or Class B contractor's license in the State of Virginia must first obtain a contractor's license bond. In Virginia, Class A contractors are those with projects valued at $120,000 annually or more. Class B contractors have professional work valued from $10,000 up to $120,000. With a Virginia contractor's license bond, a contractor can bid on and complete projects of all sizes throughout the commonwealth.
How Does Contractor License Bond In Virginia Work?
A Virginia contractor license bond protects the customer and the public from potential fraud or unsafe practices on the part of the contractor. Like any surety bond, it provides financial assurance that the contractor will abide by all Virginia regulations and building codes as they complete the work. If a dispute arises, the claim is thoroughly investigated by the surety company that underwrites the bond. If the surety finds the claim is valid, they promptly pay the claim up to the surety bond's full value. Then, they seek repayment from the bond principal, including interest and fees.
Virginia Contractor License Bond Requirements
In some cases, a Virginia contractor's license may be secured if the contractor has a net value of $45,000 or greater for Class A or more than $15,000 for class B contractors. The Virginia Department of Professional and Occupational Regulation (DPOR) mandates that a $50,000 Virginia contractor license bond can substitute for this net worth requirement. Many cities and counties within the commonwealth also require these contractor surety bonds.
How to Get a Contractor License Bond in Virginia?
At Viking Bond Service, we are your surety partner every step of the way. We have streamlined the process for obtaining a Virginia contractor surety bond into three steps:
- Complete our simple surety bond application online.
- We run a credit check.
- If necessary, you provide additional documents.
We work to get you bonded quickly and affordably.
The Cost of Contractor License Bond in Virginia
A Virginia contractor's license bond cost is based on a small percentage of the bond value. So, Class A contractors will pay more than those in Class B. However, whether you pay 1% or 5% depends upon your credit rating and work history. A sterling credit score and a history with no complaints will qualify for the lowest premium. However, we are happy to work with those who have problematic credit and will work to keep your premiums as low as possible.
Why Are Contractors Required to be Bonded in Virginia?
Contractors are routinely responsible for enormous sums of money and construction that can present considerable threats to personal safety. Virginia contractor license bonds, like other types of surety bonds, protect investors, tax-payers, contract owners, local governments, and the public from fraud and dangerous business practices on the contractor's part.
Get a Free Quote for a Virginia Contractor's License Bond Today
Do you have questions about how to get a Virginia contractor's license bond? Our professional bond agents stand ready to assist you at no charge! Request a quote online or give us a call at 1-888-2-SURETY (1-888-278-7389). We'll get your quote to you ASAP.
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