Popular Los Angeles Surety Bonds
Overview of Los Angeles Surety Bonds
The state of California requires many businesses that need a professional license or registration– such as auto dealers, contractors, mortgage brokers, and insurance brokers– to have a license bond. Contractors in California are also required to obtain contract bonds when they perform work on federal or state construction projects.
The purpose of all surety bonds is to provide protection to the state and the public from businesses that don’t comply with the requirements of their licenses or contracts. In these situations, surety bonds ensure financial compensation to the parties that have been harmed. That compensation can be as high as the bond’s penal sum, or the full amount of the bond.
For a more detailed explanation of how surety bonds work, see our ‘What is a surety bond’ guide.
For more information regarding the surety bond requirements in Los Angeles, call us at 866.450.3412. Our bond experts can answer all of your bond-related questions.
Los Angeles Surety Bonds Cost
The cost of any bond in Los Angeles will depend on what type of bond it is. Some license bonds have fixed amounts, including the $50,000 California auto dealer bond or the $10,000 California insurance broker bond. Other bonds, like the California sales tax bond, are determined by government institutions on a case-by-case basis.
The bond amount itself is not equal to the cost of the bond. The bond cost is a fraction of the full amount, typically a small percentage. The exact percentage depends primarily on the applicant’s credit score. The surety that issues the bond will also consider other financial indicators, such as financial statements, but credit score is still paramount. The higher an applicant’s score, the lower their bond cost.
If you want to know how much your bond will cost, submit our quick bond application form. We’ll contact you right away with a free quote on your bond.
Getting Bonded With Bad Credit
Most bonds in Los Angeles, with the exception of contract bonds, can also be obtained by applicants with a bad credit score.
Thanks to our Bad Credit Program, applicants who have a low or nonexistent credit score can still get bonded. Rates under this program are higher, due to the higher risk of bonding applicants with lower credit scores.
The exact rate at which you can get your bond though is determined on an individual basis. Visit the program’s page for more information, and to get a quote on your bond.
Claims Against Los Angeles Surety Bonds
If one of the parties protected by the surety bond agreement is harmed by the bonded party, the former may file a claim against the latter’s bond. By filing a claim, the claimant seeks compensation for the damages or losses they have suffered due to the bonded party’s actions. The claim amount can be as high as the full bond amount.
Claims against bonds can be filed for various reasons. Claims against license bonds differ from those against contract bonds, though the underlying reasons for claims are more or less the same: violating the conditions of the bond and the state rules and regulations.
Bond claims can be costly and difficult to manage. The best course of action for bonded parties is to avoid any misconduct that could lead to a claim, by sticking to the conditions of the bond, and the conditions of one’s license or construction contract. Beyond that, working closely with one’s surety when difficulties arise is the most important point to keep in mind. Sureties have plenty of experience in managing tough situations, and can provide you with valuable advice.
Apply for Your Los Angeles Surety Bond Now!
Want to get your Los Angeles surety bond? Just complete our surety bond application form and let us take care of the rest!
Once we have your application, we’ll get back to you with a free quote on your bond, along with further information, and instructions how to finalize your application. Once your application is complete, your bond will be issued within two working days. We will supply you with a digital copy immediately, and send the official hard copy in the mail.
Call us at 866.450.3412 anytime for more information regarding how to get your bond, or if you have questions about the bonding requirements in Los Angeles.