Protect Your Project with Builders Risk Insurance

Contractor License Bonds

Contractor payment bonds guarantee payment to any subcontractors, laborers, and materials suppliers so the project remains lien-free upon completion. The project owner, construction contractor, and the surety company enter into a three way contract that protects the owner from being liable for unpaid labor and materials cost at the end of the job. Often the performance bond and payment bond are issued together in a bundle called a performance and payment bond.

The last thing a hard working construction business owner wants is to develop a bad reputation as someone who doesn’t honor a debt. But when the unthinkable happens, a payment bond protects your subcontractors, suppliers, and laborers from a contractor default that would financially harm them.