Tag Archives: Nevada contractor

Contractor Insurance – What You Need To Know

Do Contractors Really Need Insurance?

Contractor Insurance isn’t always required as part of the initial licensing process. It’s after the Contractor’s License is issued that Contractor Insurance may become a requirement. If you are sub-contractor, the General you are bidding to will most likely require that you be insured. If you are going to be bidding on large, commercial or government jobs you will  be asked to show proof that you have the required insurance.  For a competitive quote and analysis we are here to assist you at www.contractorsexam.com.  Individual states’ guidelines can differ. Click these links for Nevada State guidelines and Arizona state guidelines.

Types of Contractor Insurance

There are many types of Contractor Insurance, such as Property, Liability, and Employee Benefits. Liability Coverage is determined to defend and pay for claims by third parties, business and contractual expenses, judgements, and legal expenses resulting from civil actions against the contractor, and actions caused by sub-contractors and employee. Liability Insurance can actually be a great tool to help the Contractor as part of their business plan as a method to transfer risk. Workers Compensation is required as part of the licensing process if you plan or hiring employees or acting as a subcontractor.

Where to get a Competitive Quote

We have a great market to offer Contractor Insurance quotes, both credit based or non-credit. We are eager to offer you competitive quotes, just contact us at:  Contact Us – Contractors Exam Center – Arizona and Nevada Contractor’s License.  If you are being asked for a certain type of Contractor Insurance, or certain limits, please let us know and we can work with our Agent to get you the best comprehensive quote. We work with James Newkirk, who specializes in obtaining competitive quotes for Contractors. He can be reached directly at 702-372-2045 or at James@crestlineins.com.

Contractor’s License Surety Bonds: AZ, NV, CA

Understanding Contractor’s License Surety Bonds

Contractor License Bonds are a type of Surety Bond, and are typically required from a variety of businesses, such as Contractors, as a pre-licensing requirement.  California, Arizona and Nevada Contractors are all required to post Contractor’s License Surety Bonds or a cash deposit. This type of bond is a guarantee that the contractor will satisfactorily complete all work for the owner according to the contract, and that all construction costs be paid. This is a three party agreement between the Surety Company (Guarantor), the Contractor (Principal) and the Owner (Obligee, such as in this case, the Contractors Board).

Each State Contractor Licensing Board has their own specific bond form and amounts required. Nevada, California and Arizona Contractor’s License Surety Bond requirements can be found using these links: Nevada: Nevada State Contractors Board; California: Contractors State License Board; and Arizona: Arizona Registrar of Contractors.

Contractors Exam Center is ready to help you acquire your bond. You can start your application here.

Is a Contractor’s License Surety Bond an Insurance Policy?

Contractor License Surety Bonds are not insurance. They do not protect the Contractor. The Contractor, who defaults, will be responsible pay back any money spent to complete the project.  Bonds function as a credit guarantee to the owner.

How much do Contractor’s License Surety Bonds cost?

Most contractors purchase a Contractor’s License Surety Bond in lieu of putting up a large cash deposit for a long period of time. For example, if the Nevada State Contractors Board requires a $10,000.00 bond, they would require a cashier’s check for $10,000.00 and a biennial fee of $200.00. If a Contractor opted to purchase a bond instead, the Surety Company would charge a premium of the bond amount which usually paid annually.  You can see bond rates here.

An important factor in determining premium is credit score based, however, some are instant issue. As a premium example from above, a $10,000.00 Nevada Contractors License with good credit could cost an experienced contractor approximately $300.00 annually, and discounts are offered in multi years.  Most Nevada Contractor License Surety Bonds $2,000.00 and under are instant issue, as are most Arizona Contractor License Commercial Surety Bonds.

Other Types of Surety Bonds

After a Contractor is licensed, they may be asked for additional bonding for public works, or large construction projects. These are called Contract Bonds, which are different than a Contractor’s License Surety Bond and include bid, payment and performance bonds. These guarantee the Contractor fulfills his contractual agreement as promised and that subcontractors are paid.

Contractors Exam Center is a great source to discuss these needs with you after licensing, as well as Liability Insurance and Workers Compensation. We can be reached at Contact Us – Contractors Exam Center – Arizona and Nevada Contractor’s License.   Next month we will discuss Liability and Workers Compensation in more detail.