How much does a contractor bond cost in Nebraska?
Various cities, counties, and local authorities throughout the State of Nebraska require contractors to post surety bonds. Below are the set bond amounts for popular contractor bonds:
- Farm Labor Contractor Bond: $5,000
- City of Omaha Contractor Bond: $10,000
- City of Omaha Electrical Contractor Bond: $12,500
- City of Omaha Commercial Air Conditioning Contractor Bond: $10,000
- City of Omaha Residential Air Conditioning Contractor Bond: $10,000
The surety company issuing the bond determines your premium rate, which is the percentage of the total bond amount you pay as the premium. During the application process, the surety company evaluates your personal credit, financial statements, industry experience, and licensing history.
EZ Surety can issue premiums for Nebraska contractor license bonds for as low as 1% of the total bond amount for applicants with standard credit. If your credit is below average, we can still offer a competitive rate for your contractors license bond.
Why are contractor bonds important in Nebraska?
Contractor license bonds hold licensed contractors accountable for the quality of their work and protect the public from damages they’ve incurred due to the contractor’s violation of licensing laws.
When the surety company issues the bond, they provide a financial guarantee to the local municipality that the contractor will comply with the regulations set forth in the contractor license. If the contractor violates these regulations, causing a loss to the consumer, the consumer can file a claim against the bond.
If the claim is valid, the surety company will cover the costs to repair the damage up to the amount of the bond. The contractor is then liable to reimburse the surety company for all damages paid.
How do I get my general contractor’s license in Nebraska?
To obtain your general contractor’s license in Nebraska you must meet the Nebraska Department of Labor (DOL) licensing requirements by completing the following steps:
- Complete the license application via the DOL Registration Portal
- Provide proof of general liability insurance and workers’ compensation insurance
- Provide requested business information
You’ll need to check with your municipality for any additional licensing requirements for general contractors.