What is a Contractor License Surety Bond?
A contractor license surety bond is required by some states, counties, and cities before a contractor can obtain their license or work in a given area. These bonds primarily protect the obligee or consumer from harm caused by the licensed and bonded contractor. While each bond will react differently, contractor license bonds can provide reimbursement for fees and fines associated with code violations, improper repairs, and other violations of the applicable contractor license regulations.
How much does a Contractor License Bond cost?
The contractor license surety bond cost will range from 1-3% of the bond amount subject to a $100 minimum premium. Other contractor license bonds such as the Florida Financial Stability Bond can be more expensive if the license holder has bad credit. However, DBL Surety can obtain your license bond regardless of credit score in almost every instance.
How long will it take to get my Contractor License Bond?
In most cases, you’ll receive an electronic copy of your bond the same day payment is received. This allows you to show proof of your bond immediately after it’s received via email. However, some obligees will not accept an electronic copy of your bond. In these cases, we are proud to offer overnight shipping options for your convenience.
Which Contractor License Surety Bond do I need?
Don’t worry, we’re here to help! Let’s start by selecting the state in which you want to be licensed.
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Rhode Island
- South Carolina
- South Dakota
How do I apply for a Contractor License Bond?
You can skip directly to the online surety bond application if you already know the contractor license bond type and amount needed. Click on “Apply Online” in the menu above, complete the application, click “Submit”, and receive your quote in minutes. DBL Surety has in-house underwriting authority for contractor license bonds which allows for a faster response time than most surety insurance agencies can offer.
How do I apply for a Contractor License Surety Bond?
- Complete our online Contractor License Surety Bond application, or
- Download and complete our printable Contractor License Surety Bond application, and
- Receive your surety bond quote in minutes!
Are Contractor License Bonds the same as Performance Bonds?
No. Contractor license bonds are not performance bonds. Performance bonds are needed for specific contracts. For example: A road builder who enters into a public contract to pave a highway would need a performance bond. It would guarantee performance of that contract only.
On the other hand, a contractor license bond doesn’t guarantee a contract. These bonds are known as compliance bonds. They ensure you or your company will comply with local or state codes and ordinances.
Do I need more than one bond?
Most likely but it depends where you and your construction company are doing business. You may be fine with only one bond if your company performs work in one particular area. However, if your company performs work in multiple cities, counties, or states, you’ll need to purchase a contractor license bond for each entity that requires one. The list of states above is a small example of how many states require some sort of surety bond. Each municipality within those states could also require a separate code compliance bond as well.