Wyoming Contractor License Bonds

At Surety Bonds Agent, we offer a full range of surety bonds nationwide through an extended carrier network. Continue below to learn more about Wyoming contractor license bonds. If you have additional questions or want to explore bonding solutions for your business, speak with one of our knowledgeable surety bond experts.

 

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What Is a Contractor License Bond?

In jurisdictions requiring one, the purpose of a Wyoming contractor license bond is to protect project owners against financial loss caused by the contractor’s failure to complete a job per the prevailing regulations.

 

Who Needs One?

Wyoming does not require contractors to be licensed at the state level, so there is no statewide bonding requirement. However, some municipalities do have licensing and bonding requirements for contractors working in those jurisdictions. You’ll need to find out what licensing and bonding requirements, if any, apply in the jurisdictions where you plan to operate as a contractor.

How Does a Contractor License Bond Work?

A Wyoming contractor license bond is a legally binding contract among three parties known as the bond’s obligee, principal, and surety.

  • The local licensing authority in a jurisdiction requiring contractors to be licensed is called the bond’s “obligee.”
  • The contractor purchasing the bond is called the “principal.”
  • And the bond’s guarantor is the “surety.”

If the principal commits a code violation or other infraction of the surety bond agreement, causing financial harm to a project owner or other entity, the injured party has the right to file a claim for compensation. The principal is legally obligated to pay all valid claims. The surety investigates each claim submitted and determines whether it is valid.

In guaranteeing a Wyoming contractor license bond, the surety agrees to extend credit to the principal for the purpose of paying a claim, if that becomes necessary. Normal practice is for the surety to pay the claimant directly and give the principal a certain amount of time within which to repay the debt. Not repaying the debt will result in the surety suing the principal to recover the funds.

How Much Does It Cost?

In some Wyoming jurisdictions that require contractors to be licensed and bonded, the annual premium for a contractor license bond is a flat amount, often only $100. But in other jurisdictions, the principal will pay an annual premium that is calculated by multiplying the required bond amount established by the obligee and the premium rate assigned by the surety.

The premium rate is the result of an underwriting assessment of the risk of the surety not being repaid for claims paid on behalf of the principal. The primary measure of risk used by the underwriters is the principal’s personal credit score.

A high credit score strongly suggests that the risk to the surety is low. So the premium rate also will be low. A credit-challenged principal is perceived as a higher risk to the surety, resulting in a higher premium rate. Most well-qualified license bond applicants will pay a premium rate in the 1% to 3% range.

At Surety Bonds Agent, we offer a full range of surety bonds nationwide through an extended carrier network. Continue below to learn more about Wyoming contractor license bonds. If you have additional questions or want to explore bonding solutions for your business, speak with one of our knowledgeable surety bond experts.

 

CONTACT US FOR A

FREE CONSTRUCTION BOND QUOTE

What Is a Contractor License Bond?

In jurisdictions requiring one, the purpose of a Wyoming contractor license bond is to protect project owners against financial loss caused by the contractor’s failure to complete a job per the prevailing regulations.

 

Wyoming does not require contractors to be licensed at the state level, so there is no statewide bonding requirement. However, some municipalities do have licensing and bonding requirements for contractors working in those jurisdictions. You’ll need to find out what licensing and bonding requirements, if any, apply in the jurisdictions where you plan to operate as a contractor.

A Wyoming contractor license bond is a legally binding contract among three parties known as the bond’s obligee, principal, and surety.

  • The local licensing authority in a jurisdiction requiring contractors to be licensed is called the bond’s “obligee.”
  • The contractor purchasing the bond is called the “principal.”
  • And the bond’s guarantor is the “surety.”

If the principal commits a code violation or other infraction of the surety bond agreement, causing financial harm to a project owner or other entity, the injured party has the right to file a claim for compensation. The principal is legally obligated to pay all valid claims. The surety investigates each claim submitted and determines whether it is valid.

In guaranteeing a Wyoming contractor license bond, the surety agrees to extend credit to the principal for the purpose of paying a claim, if that becomes necessary. Normal practice is for the surety to pay the claimant directly and give the principal a certain amount of time within which to repay the debt. Not repaying the debt will result in the surety suing the principal to recover the funds.

In some Wyoming jurisdictions that require contractors to be licensed and bonded, the annual premium for a contractor license bond is a flat amount, often only $100. But in other jurisdictions, the principal will pay an annual premium that is calculated by multiplying the required bond amount established by the obligee and the premium rate assigned by the surety.

The premium rate is the result of an underwriting assessment of the risk of the surety not being repaid for claims paid on behalf of the principal. The primary measure of risk used by the underwriters is the principal’s personal credit score.

A high credit score strongly suggests that the risk to the surety is low. So the premium rate also will be low. A credit-challenged principal is perceived as a higher risk to the surety, resulting in a higher premium rate. Most well-qualified license bond applicants will pay a premium rate in the 1% to 3% range.

 

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