Schaedler Insurance Discounts License Bonds for Contractors With Bad Credit
EL DORADO HILLS, Calif., March 12, 2012 /PRNewswire-iReach/ -- The prolonged downturn in the economy has had a significant impact not only on contractors, but also the surety's that underwrite license bonds in California. The California construction boom throughout the 2000's led to increased competition amongst many sureties that previously took a relaxed stance on credit scores when issuing license bonds on behalf of California contractors. When the construction boom ended, claims on license bonds soared, and profits for sureties that underwrite license bonds decreased forcing one of the largest bond writers, Surety of The Pacific, to consolidate with competitor HCC Surety. As a result of the market downturn, nearly all license bonds in California are now credit based, with the exception of newly licensed contractors that have never held a contractors license and are not a pool or roofing contractor. For contractors that do not fall into this category and also have poor credit, the costs of license bonding have soared exponentially. In some instances, license bond renewals have escalated from as low as $100 per year, to well over $1300 in many instances.
Schaedler Insurance has responded to this unfortunate situation by slashing bond prices. Many contractors can now purchase bonds for several hundred dollars per year less than the face amount listed on the bond through their bad credit contractor's license bond program. Most contractors that receive a bond renewal over $1300 can purchase a bond with a listed price of $1,250 per year, for only $995, with excellent financing options also available. According to a Schaedler Insurance representative, "The demand for discounted bonds for contractors with poor credit has been overwhelming. Many contractors we talk to are faced with the choice of going out of business as a result of the increased premiums, which historically have approached around $115 per year. Having a tenfold increase in your bonding costs places a huge burden on the average small contractor. We feel our choice to offer discounted premiums for these contractors will lead to increased competition in the bonding industry and ultimately lower bonding costs for contractors." While not all contractors will be eligible for the discounted program, many will. If your contractor's license bond renewal is more than $100 per year, it pays to shop around. According to a Schaedler insurance representative, "some contractors have came to us with a license bond renewal over $1,300, and we've been able to lower their bonding rate to as low as $80 per year. While it's not a normal occurrence, it's not terribly uncommon."
Schaedler Insurance is a northern California property and casualty insurance agency specializing in low cost license bonds for California contractors. Schaedler Insurance works closely with the most competitive license bond sureties in California, and further discounts rates over their face premium in many situations. To get a bond quote, just call Schaedler Insurance at 916-370-7732 or visit their website, www.schaedlerinsurance.com.
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