Bond insurance, sometimes known as financial guarantee insurance, is a type of insurance coverage necessary for electrical, plumbing, and mechanical contractors in Oklahoma. This type of insurance coverage guarantees the scheduled payment of interest or principal on a bond that is required to qualify for a state license.
As a form of credit enhancement, bond insurance reduces the amount of interest on the bond by enhancing the credit rating of the individual. At Tulsa Insurance Guy, we can provide you with great rates on bond insurance policies, allowing you to attain the licensing necessary to perform your job.
Our team specializes in a wide range of insurance policies, allowing us to assess your needs and provide you with local insurance solutions that work for you. As business owners ourselves, we understand the need for coverage that helps you succeed in your endeavors, no matter what life sends your way.
In the state of Oklahoma, all electrical, plumbing, and mechanical contractors must be licensed at the state level. The licensing process is handled by the Oklahoma Construction Industries Board (CIB). In order for a contractor license applicant to qualify for their state license, they are required to furnish a $5,000 Contractor’s License Bond per classification in the name of the bondholder. If coverage is needed for more than one type of classification, the bond can be issued to cover each classification.
Oklahoma Contractor License Bonds are required by the Oklahoma Construction Industries Board. Bonds for electrical, mechanical, and plumbing contractors in Oklahoma ensure that these professionals will work according to laws stated in Title 59 of the Oklahoma Statutes.
These bonds are continuous until canceled.
If the surety decides to cancel this bond for any reason, 30 days of written notice must be given to the Construction Industries Board. Although it is not necessary, the surety bond can have the company’s name on it. However, it must always have the contractor’s name on it.
If you are new to the industry, you are likely wondering why a bond is necessary to attain your state license. A bond acts as an added layer of protection on your insurance plan. The bond guarantees payment if you cannot meet certain conditions outlined in a contract. While bonds are not required for all professions, they are a licensing requirement for all electrical, mechanical, and plumbing contractors in the state of Oklahoma.
Instead of thinking of bond insurance as another business expense, choose to view it as additional coverage for you and your business, protecting you against the unexpected.
With the nature of a contractor’s work, there are many benefits to investing in bond insurance. When you are bonded, you are able to leverage your business growth, taking risks to improve your services. When you are bonded, your customers are provided with an added layer of satisfaction, knowing that the contract will be fulfilled, even if something unexpected happens to you or your team.
While state regulations vary depending on your license, contractors must meet the minimum requirements for insurance in addition to securing bond insurance. There are several key differences between the two.
The role of bond insurance is to protect your customers and the public from an event in which you do not fulfill your contractual obligations. Bonds are required to simply attain your state license as a contractor in Oklahoma.
Other required insurance policies such as liability insurance provide you with coverage in the event that you, a team member, or a stranger is injured, or property is damaged, due to reckless behaviors on your part. You must invest in both types of coverage to protect the future of both your family and your business.
At Tulsa Insurance Guy, we are passionate about working with contractors and small business owners in Oklahoma, helping them navigate the often complex situations involving their insurance needs. We work to assess your unique needs along with advising you on any existing state requirements, ensuring that you have the coverage you need to succeed in your business endeavors.
We are dedicated to finding a bond insurance policy that offers great value, exceptional coverage, and the best rates available! Contact the Tulsa Insurance Guy team today to learn more or to receive a quote on a policy that is customized for your situation.
Are you unsure if you need bond insurance to launch your business? Are you confused regarding certain requirements for your classification? The Tulsa Insurance Guy team is proud to offer streamlined and stress-free insurance solutions for families, individuals, and businesses. With our help, you can attain the necessary insurance coverage at exceptional rates!
As an independent insurance agency in Tulsa, we partner with over 80 nationally-recognized insurance carriers. This allows us to shop various policies, offering you options that fit both your needs and your budget. We are passionate about providing our clients with the information they need to make educated decisions regarding their insurance coverage. We will never try to sell you coverage that you don’t need, however, we will always recommend ways to fortify your coverage, preparing for even the most unexpected events.
Whether you are in need of bond insurance, commercial insurance, workers’ compensation insurance, or anything in between, Tulsa Insurance Guy is ready to provide you with solutions that cater to your business. We are proud to partner with countless contractors, business owners, individuals, and families throughout Tulsa, aiding them in their future business success.
Are you ready to get started? Contact the Tulsa Insurance Guy team today to learn more about our wide range of bond insurance policies or to get a custom quote!