A1 Surety Bonds launches instant Nevada contractor license bonds

A1 Surety Bonds now offers eligible Nevada contractors instant issue license bonds up to $50,000 with no underwriting, no financial statement review and no indemnity agreement. The move could cut wait times for applicants who must file a bond before the Nevada State Contractors Board will issue or renew a license.

Why it matters: - Nevada contractors often face a delay between the Nevada State Contractors Board assigning a bond amount and the license being issued. - The new instant issue program is designed to remove that gap for eligible bonds up to $50,000. - Faster bond placement can help contractors avoid delays when work is already lined up.

What happened: - A1 Surety Bonds launched an instant issue program for Nevada contractor license bonds. - Eligible applicants can buy and receive bonds up to $50,000 online. - Annual premiums start at 0.5% of the required bond amount, with a $100 minimum premium. - Michael Neschke, president at A1SuretyBonds.com, said the waiting period between the Board's bond assignment and license issuance is “dead time” for contractors with work lined up.

The details: - Nevada contractor bond amounts are not flat. - Under NRS 624.270, the Nevada State Contractors Board assigns each bond individually, from $1,000 to $500,000. - The Board considers financial and professional responsibility, license classification, monetary limit, experience, character and the size of the contractor's operations. - No Nevada contractor license is issued or renewed until the bond is filed or an equivalent cash deposit is established. - The instant issue program requires no underwriting for eligible bonds at or below $50,000. - Eligible applicants also avoid financial statement review and do not need an indemnity agreement. - A $25,000 bond may cost as little as $125 per year. - A $50,000 bond may cost as little as $250 per year. - Bonds above $50,000 remain available through underwriting. - Higher-value bonds may include credit review, business financial statements and indemnity requirements, depending on the surety and the contractor's profile.

Between the lines: - The program changes how contractors buy the bond, not the legal requirements for the bond itself. - Nevada license bonds still must be written by a surety authorized to transact business in the state. - The bond must be executed on the Board's form, signed by the proper party for the business structure, countersigned by a Nevada agent and accompanied by a power of attorney. - The bond must remain continuously in force. - A surety may cancel only with 60 days' notice to the Board and the contractor under NRS 624.275. - Neschke said no indemnity agreement does not mean no responsibility, and a contractor still reimburses the surety for valid paid claims. - Nevada license bonds are not insurance for the contractor. - Under NRS 624.273, the bond protects owners, employees, suppliers, materialmen and certain injured persons. - Failure to file or maintain the bond can lead the Board to deny, suspend, revoke or refuse to renew a license.

What's next: - Nevada contractors must confirm their assigned bond amount with the Nevada State Contractors Board before applying. - Eligible applicants can apply online at A1SuretyBonds.com or call (800) 737-4880. - A1 Surety Bonds says its broader online process lets applicants apply for, pay for and receive a surety bond in three steps.