Please note that the following information is related to contractor’s license bonds. If you are a contractor seeking information on obtaining contract surety bid and performance bonds, please visit our contract bond page.
What is a Georgia contractor’s license bond?
Contractor bonds in Georgia ensure that principals (contractors) complete construction work in accordance with the laws of the city/state. This includes paying all taxes and adhering to all building codes. Typically, these bonds protect the city/state and/or any individual from financial loss as a result of the principal’s noncompliance up to the full amount of the bond. In the case that the contractor fails to abide by all terms of the license and permit bond which causes the third party to suffer losses they can than be compensated from the bonding company.
Obtaining Contractor’s License Bonds for My Trade.
Various cities and contractor classifications in Georgia require contractors to post surety bonds prior to completing work. Applicants should verify their required bond amount with the city and/or government entity in charge of licensing and registration for their classification prior to bonding.
Bonding requirements for general and residential contractors applies to the entire state of Georgia. The following places have surety bond requirements that vary for contractors:
- General Contractor, Residential Contractor require a license bond in the amount of $25,000
What is the process to obtain the bond?
Colonial offers one of the fastest ways to obtain a contractor’s license bond. We are the insurance company — which means no agent, no broker, and no middleman. There is no turnaround time to obtain your bond. The steps are simple- get a free quote online, fill out your information, answer our underwriting questions, and enter your payment method. Your bond will be available in a PDF or original form, and always accessible to you online. It’s that simple!
What Do Contractor’s License Bonds Cost?
Contractor’s license bonds are reasonably priced and easy to obtain — so that you can run your business. You may notice that with other insurance agents and middlemen companies, your premium rate will fluctuate and include additional hidden fees and costs. Not at Colonial. We offer a flat rate for each contractor’s license bond.
Does it matter where I get my bond?
It is important to understand how surety bonds work, and who is the insurance company issuing your bonds. It is easy to run your business when you deal direct with a quality insurance company licensed in New Jersey to write surety bonds. Colonial is an A (Excellent) rated insurance company by A.M. Best, that has been incorporated since 1930. We are Treasury listed, and licensed and admitted in all U.S. states and territories.