Class II Contractors Bonds - The Bond Agency

Class II Contractors

Small Contractors that produce a CPA financial statement but statement is not in standard format.

Examples of a "non standard" financial statement a statement prepared on a simple accrual (i.e. other than a completed contract or percentage of completion method). Or theory is "at least these contractors have a CPA guiding their affairs and preparing a financial statement". Again, we hope these contractors continue to grow their "bonding profile" to a more standard presentation. (i.e. Class III or IV).

UNDERWRITING REQUIREMENTS:
Bonding on contracts up to $300,000 is generally available for this class. To apply we'll need:

  • Contractor Questionnaire.
  • Current CPA Fiscal Year End (FYE) financial statement and prior year FYE statement.
  • Internal or "in house" financial statement if FYE is more than 6 months old.
  • Work on Hand in required format.
  • Bank Line Letter showing amount of line of credit.
  • Personal financial statement from each equity owner of the business.
  • Owners resume of experience in trade or line of work.

BOND LINES:
Per bond limits up to $300,000 or more. Work program limits will generally be capped between $750,000 and $1,000,000 (work program is all work on hand bonded or unbonded). This may not be available to all accounts in this class. Requests will be on a case by case basis.

RATES:
Rates for this class of business will generally be 2.5% of contract amount.

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For Contractors - To obtain a contract bond or bond line start here. We'll do a quick review and let you know what additional information we will need. Click Here to apply or Click Here to learn more about Contract Bonds.

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