Bonding capacity directly impacts how much work a contractor can take on and how fast their business can grow. Understanding how surety companies evaluate bonding limits helps contractors plan smarter, win larger projects, and avoid growth roadblocks. With the right financial strategy and surety partner, bonding capacity can increase over time and unlock new opportunities.

New contractor license applicants are often required to obtain a contractor surety bond, but many don’t fully understand how it works. This FAQ explains why contractor bonds are required, how much they cost, how claims work, and what new contractors need to know to get licensed without delays.

Permit bonds are required by cities and counties before issuing construction permits and ensure contractors follow building codes and permit regulations. Unlike contractor license bonds, permit bonds are usually project-specific and tied to individual jobs. They protect the public by guaranteeing work is completed according to approved plans and local rules. Contractors in trades such as electrical, plumbing, HVAC, and general construction often need permit bonds.

Choosing a surety bond and liability insurance agent with a strong reputation is critical for protecting your dealership, license, and finances. Reputable agents understand state requirements, avoid filing errors, and provide reliable support during renewals and compliance reviews. Working with a trusted provider like All American Bonds and Insurance helps dealers secure accurate bonding and insurance coverage without delays. With consistently positive Google reviews and indu

Switching your auto dealer surety bond provider can feel intimidating—especially when your entire business depends on keeping your license active. Even one mistake can lead to delays, compliance issues, or, in the worst-case scenario, a suspended dealer license. Fortunately, switching providers is a safe and simple process when done in the correct order and with the right expertise guiding you.