Nebraska Contractor License Bond

The bonding requirement extends to the following contractor license types: Class A, B, C, D and E.

Each of them has their own limitations so it’s important to understand the terms of your licensure to make sure you are compliant.

The penal sum of contractor license bonds in Omaha is set at $10,000. This is not the cost for contractors, though. The penal sum of the bond is the maximum compensation a claimant can obtain if the contractor is in violation of the bond terms.

To get bonded, contractors pay annual premiums, which are a small percentage of the penal sum. The premiums are often between 1%-3%, if the applicant has good credit standing. Applicants with bad credit often see higher premiums. Refer to the table below for more information.

These estimates are based on your credit score alone, which is not always the only factor that sureties consider. Your professional experience, the age of your business, and your financial strength are usually also considered. Find out more on our “What Does a Surety Bond Cost?” page.

The only difference between applicants with good credit and those with bad credit is in the premium the pay. 99% of bad credit applicants can still get bonded, and don’t even have to post collateral. The only exception are applicants with open bankruptcies or late child support payments- in most cases their applications will be rejected by bonding companies.

Our bad credit surety bonds guide contains more information that contractors with credit issues will find useful.

Using our online application is the fastest way to get bonded. It takes a few minutes to submit all the details. We give you a free quote at the end and, if you choose to continue, we can help you fill out the bond form and provide all the paperwork you need for the bonding company.

Processing times are quite fast, so we can mail your bond within 1-2 business days in most circumstances. Obligees always require the original bond form when you apply. If you want to keep digital copies, you can request them via email.

In order for the City of Omaha to grant you a contractor license, you need to complete a number of additional steps. You will need to buy insurance coverage and pass an examination. There are some additional specifics which are based on the contractor classification you choose. Consult the website of the City of Omaha for all the details.

If you follow all regulations and building codes, there should be no reason to worry about bond claims. However, if you have been notified of a claim, you can either settle it out-of-court or try to fight it in court.

The best course of action depends on whether you committed a violation or not. If you did, it’s best to reach an out-of-court settlement. If you did not, however, and you can show sufficient proof of it, you can even get legal assistance from the surety.

Still have questions about getting bonded as a Nebraska contractor? Call us at (877)-514-5146 to let us know how we can help!