Which of the following is not eligible to receive benefits from a contractor's license bond?

Which of the following is not eligible to receive benefits from a contractor's license bond?

• A. A supplier
• B. A subcontractor involved in an accident on the job site
• C. The project owner
• D. The general contractor

Answer: (B)

Contractor's license bonds are meant to protect the public from violations of license laws and to ensure payment for work and materials tied to a licensed project. If the licensee fails to comply or to pay those who provided labor or materials, a claimant such as the project owner or a supplier can recover losses from the bond. However, injuries that occur on the job site are not covered by this bond; they are handled through workers' compensation or ordinary liability insurance. So a subcontractor who is injured on the site would pursue those insurance channels, not the license bond.

Contractor's license bonds are meant to protect the public from violations of license laws and to ensure payment for work and materials tied to a licensed project. If the licensee fails to comply or to pay those who provided labor or materials, a claimant such as the project owner or a supplier can recover losses from the bond. However, injuries that occur on the job site are not covered by this bond; they are handled through workers' compensation or ordinary liability insurance. So a subcontractor who is injured on the site would pursue those insurance channels, not the license bond.