Top 5 Insurance and Bond Companies for Builders
What Insurance and Bonding Services do Contractors Need?
Bonding
- Contractor License Bonds: These are required by state and county agencies before issuing certificates of competency or assigning an FRO
- Bid Bond: In larger jobs it must be submitted in order to protect the owner in case the contractor decides to refuse to honor its bid
- Performance Bond: Protects the owner in the event that repair/correction work is needed due to poor workmanship on the contractor's part
- Payment Bond: Guarantees that suppliers and subs will be paid by the prime contractor
- Combined Performance and Payment Bond: The owner can obtain all desired protection from this single bond
Insurance
- General Liablity: You are required by law to carry general liability coverage, just make sure that you observe the minimum amounts required by your licensing board
- Worker's Compensation: Companies like AP Intego© are a good alternative if you are getting started and need fast/reliable coverage