| Before you can have your license activated you will probably
be required to purchase
a bond, commonly known as a LICENSE bond, with a minimum
value (our minimum was $10,000 in 1995 so I can imagine it's significantly more now).
This bond that you are
required
to purchase basically gives your customer one more pocket
to reach into when and if you do not perform as your contract(s)
states, and your customer wins a lawsuit against you.
The bond
company you choose will provide proof of your purchase
to the License Board and at that time you will pay your fee
of $150 to have your license activated.A nice thing about the bond requirement is that once you
have purchased your bond, you will use the same bond for all
additional classifications you add to your license.
Two exceptions to this rule are: 1) If the additional
classification(s) is used to start an additional company
in which case, an additional bond is required and 2) If
the additional classification(s) is roofing and/or pool
contracting in which case, a higher bond of $10,000 is required.
It is a good idea to check out several different bonding
companies until you find one you are comfortable with. We
use Southern
California Insurance Brokerage for our bonding and insurance
needs. Always inquire as to what the 'rating' of the bond
company is. There are several different ratings such as: A++;
A+; A; A-; B+; B; B-; etc. These ratings are assigned by a
company named A.M. Best, and the ratings indicate the past
(and present) performance of the bonding company.
Thank you for visiting. I hope that this article has helped
you! If you've got a couple minutes, could I ask you please
to use the link right below here to tell me what I can do to
make this page more helpful to you and others? It'd be a great
help if you can. :) Thank you!
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by clicking here. Have a great
day! Diane
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