Plumbing Bond

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What is a Plumbing Bond?

Professionals working in the plumbing industry may be required to secure a plumbing bond. This surety bond is a contract between three parties: the state or local licensing agency requiring the bond (the obligee), the licensed plumber (the principal), and the surety providing the bond. Under this agreement, a plumbing bond helps guarantee a licensed plumber will perform his or her contractual obligations and work according to state or local laws.

If a plumber or plumbing company with a plumbing bond fails to do so, a claim can be made against the bond. Claims can have a negative impact on your business because they are required to be repaid to the bond provider. A history of legitimate plumbing bond claims may also make it challenging to obtain a plumbing bond in the future.

What Does a Plumbing Bond Cost?

As with other surety bonds, plumbing bond costs are determined as a percentage of the total bond amount required. For instance, if a state requires a licensed plumber to obtain a $10,000 bond, the bond premium can range from 1 to 5% of that amount. For plumbers with strong personal credit, organized business financials, and a track record of industry experience, the percentage rate is lower than for plumbers with bad credit or little experience in the business.

To determine the bond amount you need, check with your state or local licensing authority. This is the first step in understanding plumbing bond costs, and this information can help you fill out a quote form online to start the process.

Frequently Asked Questions

How much does this bond cost?

The cost is usually 1 – 10% of the bond amount. Keep in mind that pricing varies based on the bond amount, and your financial strength.

What is the process?

Apply and get approved on our website, sign the surety agreements, and we will ship the bond out. If you would like to learn more about what surety bonds are and how they work, you can read our detailed guide here.

Can I get this bond with bad credit?

Yes, it’s possible, but bad credit usually results in higher rates.

What if a false claim is filed?

You must contact us immediately, as we have a team of claim specialists here to find a resolution for you. Keep in mind, it is crucial that you work with an expert in the surety industry. Learn more about how to ensure you choose the proper bond company.

Are you looking for a different type of bond?

You can take a look at our full list of license and permit bonds.

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