3 tips on getting bonded for HVAC construction
What is a contractor license bond?
A contractor license bond is a type of surety bond which protects your clients much like insurance. A big difference is that surety bonds are only purchased if required by law in order to be licensed.
The bond guarantees that you will follow all applicable state laws and work using ethical methods. If you fail to complete the work, break the law, or act in other illegal or ethically unsound ways, a claim can be made against your bond.
The bond amount will be used to resolve whatever issues there may be, offering compensation to your clients. Just remember — even though your bonding company will cover this initially, you’ll be required to reimburse them in the end.
It’s important to avoid bond claims at all costs, as they’re costly and can harm your reputation. Be smart and try to resolve any conflicts before they get to the claims stage.