What is a Nevada Contractor License Bond?
Any contractor working in Nevada must comply with the Nevada State Contractors Board and obtain a valid license to do business. Part of the licensing process is posting a Nevada contractor license bond which works as a form of security for customers. If a contractor misuses funds, does not keep financial records, or violates state or local building codes, a claim can be made against a Nevada contractor license bond.
Like other surety bonds, a Nevada contractor license bond is an agreement between three parties: the principal who is required to obtain the bond, the obligee which is the state authority responsible for overseeing licensing requirements, and the surety company providing the bond.
What Does a Nevada Contractor License Bond Cost?
Several factors determine how much a Nevada contractor license bond will cost, including the type of contractor license you hold and the financial stability of your business. The bond amount you need also plays a role, and this can range significantly depending on your business. Nevada contractors may be required to post a bond between $1,000 up to $500,000, but this is not the price you pay to get bonded.
A Nevada contractor license bond costs only a fraction of the total bond put in place. You are charged a percentage of the bond, known as the bond premium, that ranges from 1 to 10%. The surety company providing your Nevada contractor license bond reviews your personal credit score, experience in the industry, and business financials to determine the rate you pay. Bad credit results in a higher bond premium because you may be a greater risk to the surety company when it comes to future claims.
How Do I Get a Nevada Contractor License Bond?
Obtaining the Nevada contractor license bond you need begins with submitting an application and request for a bond quote. You can complete this process online quickly, and receive the exact pricing of your bond after the surety company reviews your application details.