Almost every state requires an electrician to be bonded, licensed, and insured. Without a bond, a license will not be granted. The bond guarantees that the contractor will comply with state requirements that protect the public. A bonded and insured electrical contractor means the public is protected from any fraud or misconduct imposed by the electrician. This bond type is an agreement between the electrician, the obligee, and the surety company. The obligee is usually the local, state, or federal government. The surety company is the party that underwrites and ensures the bond.
Any damages that result from the electrician acting against the bond will be covered up to the bond amount. If a claim is filed against the bond for any reason, the surety company will investigate the claim and pay out the bond. If the surety company pays out the bond, then the principle will be obligated to pay the surety back. Breach of bond conditions can include property damage, injuries, or losses that are a direct result of the electrician.
Listed below are some acts by an electrician that would result in a claim being taken against the bond.
Here are just some of the states that require an electrical contractor bond:
For most states, there is not a set minimum and maximum bond amount since the bond coverage depends on the volume of work that is done. To determine the specific bond amount, contact the local or state representative for information.
At Surety1, the application for a bond is simple and conveniently online. Visit the online application page. Our experienced bond agents will get a bond delivered within 1- 2 business days.