What You Should Know About Contractor License, Bonds, and Insurance
Earning client trust as a contract means having your license, bonds, and insurance in place. What’s more, the client needs to know that they’re in place and legitimate. If you want to use your status as a licensed and bonded contractor to your advantage to bring in more work, there are some right and wrong ways to go about it.
- Do advertise your contractor license status. Getting your contractor license took time, effort, and was an investment. Now, it’s time to make it work for you. Your clients would rather work with a licensed contractor rather than an unlicensed one, so be sure to put your license stats and number on your advertisements.
- Do advertise your contractor insurance coverage. Insurance is a great way to put a prospective client’s mind at ease. Let them know you have adequate contractor insurance in place so they know you have a safety net against accidents.
- Do include your license number in ads. According to the California State License Board, your contractor license number must be included in anything that is considered advertising for your business. Be sure that anything that promotes your business (online or otherwise) has this number.
- Don’t advertise your bond status. In California, it’s forbidden by law to advertise that you are bonded. Check your business cards, website, and social media accounts that could include this information.
- Don’t advertise illegally. Generally, you know what you can and can’t advertise. Never use false or misleading advertising, don’t mention a price that you don’t intend to honor, and avoid advertising work that you are not licensed to perform.