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Applying for a Plumbing Contractor Surety Bond

Todays Date: October 20, 2018
Some states require that plumbers apply for a surety bond before having a license issued, reactivated or renewed. The plumbing contractor surety bond protects the customer by ensuring that the plumber will appropriately perform a job as per local or state codes. Bond costs vary from state to state, and rates depend on individual qualifications and credit score. Apply for a plumbing contractor surety bond online, and you’ll typically receive your bond within the same day.

Plumbing contractors must have a surety bond when they apply for or renew their plumbing contractor license. This type of surety bond protects the public in case a plumbing contractor fails to appropriately perform a job. If the contractor violates local or state codes, and the customer complains to the state’s plumbing board, the bonding company will then step in to compensate the customer for their money lost.

Plumbing contractor surety bond amounts vary from state to state. In New Jersey, the NJ Department of Law & Public Safety Division of Cons. Requires a NJ Master Plumber Bond amount of $3,000. In Chicago, the required bond amount is $20,000. A standard bond rate is typically 1-3% of the bond amount requested. For example, a $10,000 bond will usually cost between $100 and $300. Standard bond rates depend on a few basic requirements: the applicant must have a credit score of 650 or higher, no prior claims, at least three years of experience, and good net worth. Most applicants with good credit will qualify for the preferred rate a surety bond service indicates, but many services offer special programs with competitive prices for those without flawless credit.

A standard plumbing contractor bond can normally be issued the same day. If you have less-than-perfect credit, the surety bond company will help find the lowest possible price given your individual qualifications. Those with credit issues can generally expect to receive their bond within three to five business days.

Should you have specific plumbing contractor surety bond questions, require more information about this type of bond in your state, or wish to speak with a knowledgeable agent or underwriter, there are agents happy to help and resources online meant to simplify your surety bond application process.

Christen R. is a freelance writer for BondAbility. For over thirty years, BondAbility has processed surety bonds for insurance agents, serving as underwriters for major surety bond companies. No longer just underwriters, BondAbility now works with both agents and consumers, helping them obtain surety bonds and simplifying the bond application process. Now bringing these services directly to you, BondAbility is committed to offering fast, simple, and cost effective methods for customers and agents who wish to obtain miscellaneous surety bonds, including plumbing contractor bonds.

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