A contractor license bond, commonly referred to as a 660 bond or a construction license bond, is a legally enforceable contract which binds together three parties — the construction professional who seeks to purchase the contractor license bond (the principal); the entity which requires the contractor to be bonded (the obligee); and the company which issues the bond and guarantees the contractor’s obligation (the surety). This commercial license bond provides proof of financial stability and collateral to state, county, and local entities or municipalities for any individual who seeks a contractor license in his or her state and serves as a safeguard to the public. The ProSure Group provides contractor license surety bonds for rates as low as 1 percent of the total bond amount. Contact us today to get a free price quote or for more information about license surety bonds in your state.
Yes — in most states. There are hundreds of different types of license bonds for contractors required throughout the United States by local municipalities at the city and county level, as well as state-required license bonds. Construction license bonds are required by the majority of states to guarantee that the general contractor or construction professional will operate his or her business in accordance and compliance with the regulations and requirements, as they pertain to the specific contractor license.
The State of Florida’s required bond, referred to as the Florida construction license bond or the Florida Contractors SUB-660 FICO Credit Score Bond, must be posted by construction professionals and contractors who apply to be licensed in Florida by the Department of Professional Regulation, Construction Industry Licensing Board (CILB), and those who have a FICO 660 credit score. If the applicant has a credit score below 660, they must pass two requirements, which prove that the applicant is both financially responsible and stable. Florida has two classes of contractors licenses — Division I Contractor License is a bond of $20,000 and Division II Contractor License is a bond of $10,000.The bond amounts for both Division I and Division II may be reduced by half the total amount if a board-approved financial responsibility course is completed by the applicant.
The Florida Division I Contractor License comprises licenses for the following types of contractors. Contractors who fall outside of these three categories must apply for the Florida Division II Contractor License.
The Florida Division II Contractor License comprises licenses for types of contractors who are omitted from the aforementioned Division I categories, such as the following.
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For the vast majority of contractor license surety bonds, annual bond premiums are determined based on the applicant’s personal credit score. Contractors with high credit scores may be eligible for standard bond market rates, which range from 1 percent of the total bond amount — for example, the cost of a $10,000 contractor bond is just $100 at 1 percent of the total bond amount for the bond’s term. For applicants with a low credit score, the annual premium may be higher — the annual premium typically depends on the applicant’s credit profile, among a number of additional financial factors. Our surety bonds company provides appliances with the lowest rates available on the market and in most cases, provide bonding to those with a wide range of financial situations and credit scores. Contact us to get a free quote.
No. A 660 bond or contractor license bond guarantees only compliance with a licensee’s state, local, or county license. Applicants who require a bond to guarantee performance of a specific contract must apply separately for a contract bond, such as a construction bond. However, it is important for applicants to note that the criteria for underwriting a contract bond may be more rigid and comprehensive than with a contractor license bond. For more information or to get a quote for a construction bond or construction license bond, contact The ProSure Group today.
No. Licensees are required to obtain a separate surety bond for each state in which he or she intends to conduct business. While the vast majority of states — as well as the local municipalities and counties within each state — require contractors to obtain construction license bonds, certain entities do not have this particular bonding requirement. To identify which type of bond you require for a state, contact surety bond specialists today.
A contractor license bond, 660 bond, or construction license bond will most likely expire after a period of time as specified by the original term. License bonds which exclude an expiration date are valid from the effective date until the bond is canceled, with written notice from the surety to the obligee as well as the principal. Obligees typically require a specified range of time — ranging from 15-90 days — to serve as notification prior to the effective date of cancellation. If a bond renewal is requested, the bonding company may renew and bill for the bond either on an annual or bi-annual basis, depending on the original terms of the license bond. Contact us to learn more about license surety bond renewal requirements for your state.
Our company offers all types of contractor license surety bonds. We are familiar with the contractor licensing requirements in every state and local or county municipality. Additionally, we offer the lowest available rates on the market, even for applicants who have low credit scores. To get a free quote for a construction license bond, contact our surety bonding company today.