Could you imagine the headache for a homeowner to have a job halted because of a material or labor issue? This is one of the reasons that Contractor Payment Bonds were formed. Rock 10 Insurance Services can provide you with exceptional bond market knowledge.
Contractor Payment Bonds sub-type of a contract bond. Contractor Payment Bonds are a promise to pay subcontractor, suppliers, and your workforce. Performance bonds and payment bonds are usually issued together, called a “Performance and Payment Bond”. They are most commonly bought during the bidding part of a construction proposal, by a contractor, and then submitted to the lead on the project. To guarantee that all subcontractors and laborers are paid on time and in full, as well as all other creditors, a payment bond helps to keep the flow of progress going.
With the latest recession, California surety companies saw substantial losses and many went bankrupt. Accordingly, strict rules were put in place to prevent high-risk individuals from entering the market. Claims can be made on the payment bond for breaking contract or slow/non-payment, and if deemed guilty, the managing surety company must promise payment up to the bond’s limit.
Rock 10 Insurance Services knows the latest bond changes to keep your business current, along with the different levels of protection your construction business might need. We can tailor-fit your business with our bond market solutions, while also getting you covered for Contractor General Liability Insurance at a price point that will make you happy. Please call us today for a fast an easy quote at 866-376-2510.