Construction Surety Bond Arkansas
If you need a bond for any reason, you’ll want to know how to get one in Arkansas. Surety bonds, also known as license and permit bonds, protect the public from unscrupulous contractors and professionals. These types of bonds ensure that you will perform your obligations properly and pay for any losses incurred. Generally, you can apply for these bonds online.
There are many types of surety bonds in Arkansas. Some of the more common ones are license and permit bonds, court bonds, and fiduciary bonds. All of these bonds have similar intents. They ensure that one party will pay compensation to another party in case the other party defaults on a contract or service.
The amount of coverage required for a surety bond depends on many factors, including the applicant’s financial and business standing. The cost of a surety bond is a percentage of the amount of coverage. Various factors contribute to the bond’s rate, but the biggest influence is personal credit score. An applicant with a good credit score can typically get a bond at rates ranging from 1% to 4% of the bond amount. This is known as the market rate.
Learn More On – How To Get A Surety Bond In Arkansas
- Contractor Risk Coverage :
Contractor Risk Coverage is an important part of your construction insurance strategy. Large construction firms need specialized insurance policies to protect themselves from large losses. They buy the same insurance coverage as medium-sized contractors, but they have special needs, such as wrap-ups and OCIPs. If you’re not sure what type of coverage you need, consider contacting an experienced Commercial Risk Advisor. Pascal is an experienced Commercial Risk Broker with expertise in construction. - Contractor Compensation Coverage :
If you own a construction company, you should make sure that you have Contractor Compensation Coverage. In many states, a general contractor is required to carry this insurance in order to provide workers’ compensation to injured workers. Without it, the business would be responsible for the injured employee’s medical bills and lost wages.
- Contractor Installation Coverage :
Contractor installation coverage is a type of insurance that protects you if you are found legally liable for damage to property. This type of coverage covers medical expenses and damages incurred by your employees or customers and extends to legal and court costs. The costs of this insurance vary but can save you money in the long run. - Contractor Tools Coverage :
If you own equipment that you use for your business, you should consider purchasing contractor tools coverage. This type of insurance provides coverage for tools that you already have and any tools you purchase in the future. This type of insurance policy covers any type of equipment, including hand and power tools, including trailers. This type of insurance also covers your tools when they are off your property.