What Is A Texas Contractors License Bond?
A surety bond company is only one of three parties involved in a Texas contractors license bond contract. Each of the three parties plays a role in the contract and has an interest in the bond. The parties involved in a TX contractors license bond are:
- The Principal. This is the contractor who is purchasing the bond and seeking licensure. It is his skills and performance that are being guaranteed.
- The Surety. This is the company that provides the assurance that the Principal will fulfill his obligations and responsibilities as are expected of him.
- The Obligee. This is the entity that requires the bond and is being assured of the performance of the Principal.
Essentially a Texas contractors license bond is a financial guarantee that should a consumer bring up a claim against a contractor due to negligent or fraudulent actions and that claim is deemed legitimate, the penalty amount on the TX bond will be paid to cover any damages or loss. Ox Bonding can help you get your Texas contractors license bond, contact them today for more information.