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Best Price License Bond Insurance in New York City, New York

What is Contractor Bonds?

A contractor bond is required in most states. The contractor’s bond must be issued by an insurance carrier admitted by the California Department of Insurance. The insurance company that issues any surety bond will be referred to as the “surety company” or “bond company” as the contractor you are the Principal, the surety bond company as the Obligor, and the CSLB as the Obligee.

The surety company will provide the CSLB a guarantee (the surety bond) that vendors, customers, suppliers and employees of a licensed contractor will receive payment for financial damages due to a violation of a Contractor License Law amounting to several thousands of dollars depending on your state (“penal sum” or “bond amount”).

When Do I Need a Bond?

  • License requirements of the state or county.
  • Performance and Payment bonds are contract requirements of the owner or prime contractor.

What Does a License Bond Cover?

  • The license bond provides assurance to you customer that you will perform your contracted work.

License Bond

A license bond is used to obtain or maintain your contractor license. A license bond is required in most states, and is your guarantee that you won’t violate any state law regulations.

You can get a license bond as low as $70, but the price goes up depending on personal credit, license history and the classification of the contractor.

Unlicensed contractors do not carry contractor bonds and in result consumers do not receive protection from the bond insurance requirements. Every year the CSLB receives thousands of complaints regarding unlicensed contractors, don’t be apart of that statistic!

Performance Bond

Also known as a contract bond, performance bonds are required by law for any public construction projects. Contractor performance bonds ensure you’ll follow through on your end of a contract and complete construction in the time and manner agreed upon.

These types of bonds are required for prequalifying a contractor and providing assurance that you are properly vetted to perform the work they wish to undertake. This also provides financial protection the the obligee should the contractor default on its contractual obligation at the same time ensuring that the contract will be performed properly and that laborers and suppliers will be paid for their work and the materials provided.

This type of bond is for project-specific surty between a principal and an obligee. Contract bonds cost between 2.5% and 3% of the contract amount and this rate is based on the financial stability, experience, and proven reputation of the contractor as well as project details.

To qualify for this type of bond, contractors will need to provide information to the surety company to demonstrate their ability to complete the contract as expected. The information requested varies depending on the type of work that will be performed and the size of the contract.

The process of the contract bond goes as follows, letter of bondability, bid bond, performance/payment bond then project completion.

Bid Bond

Bid bonds keep the bidding process fair for everyone by guaranteeing that the successful bidder will enter the contract and provide the required contract bonds.

When you are in the bidding process of a project there may be a listed requirement to include a bid bond with your submitted bid documents. This type of bond provides financial assurance that if you submit a bid, if awarded the contract, will enter into a formal contract with the owner and post a performance and payment bond if required.

Payment Bond

Once you have been awarded the contract (hooray!) the project owner (obligee) will include all the requirements they expect for performance (written within a contract) and or a payment bond. The performance bond is a surety providing a credit line guaranteeing the performance of work as specified by the contract. A payment bond guarantees payment to labor suppliers and material providers.

Payment bonds are a type of contract bond required by law for any work on public projects. Contractor payment bonds work to protect subcontractors, day labourers, and materials suppliers against non-payment.

The Best License Bond Insurance to get you on the job safely in New York City, New York

If you're running a contracting service, you most likely currently know how easily things can go wrong. From broken equipment to injured employees, and everything in between, building and construction is a hazardous industry where accidents happen every day. Being so, there are few things more vital to your contracting company than insurance that will cover you totally when hard times fall. So if you're trying to find the best possible license bond in New York City, New York, you’ve arrived - put your company in the capable hands of Pascal Burke Insurance Brokerage today!

Where Contractors Go to Get Insured!

We are specialist in an array of policies that cover not only general cases but specialty contractors. Check out how we can help you below.

Why us

Many contracting insurance brokers have business diplomas and briefcases - they might understand the stats, however they don't have the facts. When you select Pascal Burke Insurance Brokerage, Inc., you're drawing from decades of experience in the building and construction industry. Having been in the field ourselves, we know your insurance needs like the back of our hands - hands that are still calloused from the work you do everyday. Some things just can't be taught - they must be lived. So, if you want insurance coverage brokers who'll treat your company as they would their own, we're the ones for you. Let's build something.

About us

In 1974, our founder and president Pascal Burke began his career in construction as an architect’s apprentice, but his heart was in building so he joined a large concrete company, building parking structures and sports stadiums, After a few years he began his own construction company specializing in parking structures until 2005, he then joined the board of directors of an insurance company that specialized in contractors general liability. After 4 years, he began Pascal Burke Insurance Brokerage, Inc. Since this beginning we have specialized in contractors’ insurance and are licensed in over 40 states. We truly know contractors from the ground up!

Chicago, officially theCity of Chicago, is themost populous cityin theU.S. stateofIllinois, and thethird-most populous cityin theUnited States, followingNew York CityandLos Angeles. With a population of 2,746,388 in the2020 census,it is also the most populous city in theMidwestern United Statesand thefifth-most populous city in North America. Chicago is thecounty seatofCook County, thesecond-most populous countyin the U.S., while a small portion of the city'sO'Hare Airportalso extends intoDuPage County. Chicago is the principal city of theChicago metropolitan area, defined as either the U.S. Census Bureau'smetropolitan statistical area(9.6 million people) or thecombined statistical area(almost 10 million residents), often called Chicagoland. It isone of the 40 largest urban areas in the world.

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