Most construction contracting businesses, including plumbing and HVAC companies, are required to secure licenses before they are legally allowed to work in many states. However, the laws and requirements for licensing vary from state to state. One common condition of obtaining a license as a plumber or HVAC technician in most states is to secure plumbing or HVAC bonds. These bonds are required by various states to protect consumers and the state from potential losses caused by an HVAC technician or plumber. Here is some general information about the process of becoming licensed and bonded for plumbing and HVAC contractors.
Plumbing or HVAC bonds are types of surety bonds that are required as a condition of obtaining a license. These bonds protect the public against potential illegal or unethical actions by the contractors who hold them. A plumbing or HVAC bond is a binding agreement between the following three parties: