Insured and Bonded:
Often Contractors will refer to themselves as being Insured and Bonded. The “Insured” part is an easy concept. However, the “…and Bonded” part, may not be understood.
“And Bonded” commonly means the Contractor has a License and Permit Bond. The bond is a guarantee that the contractor will observe the rules adopted by a municipality for public safety – or if not, they will have to pay a penalty.
A License and Permit Bond is typically required by municipalities in order to obtain your Contracting License. The bond must be renewed each year or your License will be placed in inactive status.
Here is a brief discussion and video on the Topic using St. Louis and St. Charles County as an example for an Electrical Contractor or Communications Contractor (the requirements will be similar for other trades - e.g. Plumbing, HVAC, etc.):
License and Permit Bonds for Electrical Contractors:
A license and permit bond guarantees that your business will operate in compliance with the building codes established by State, County, City, etc. The bond is a requirement to receive your Electrical Contracting License from a Municipality.
- Both St. Charles County and St. Louis County, MO require Electrical Contractors to have a $10,000 License and Permit Bond
- With decent credit, we can turn these bonds around for you very rapidly.
Here is a brief video discussion on the Topic:
Call 636-519-0059 or email today if you need a License and Permit Bond
Posted by Dan Hebbeln