Contractors License Compliance Bond

A contractors license compliance bond is a surety bond required by state licensing boards to ensure contractors comply with licensing laws, regulations, and industry standards. It protects consumers from contractor fraud, poor workmanship, and non-compliance with state requirements.

Contractors license bond premiums typically range from 1-3% of the bond amount annually. For a $15,000 bond, you might pay $150-$450 per year. Rates depend on your credit score, financial strength, and contracting experience.

Bond amounts vary significantly by state and contractor classification. General contractors typically need $10,000-$100,000 bonds, while specialty contractors may need $5,000-$50,000. Check with your state licensing board for specific requirements.

Most contractors license bonds are approved within 24-48 hours for applicants with good credit. Complex applications or those requiring additional documentation may take 3-5 business days.

Yes, bonds are available for contractors with challenged credit, though rates will be higher. We work with specialized programs for contractors with credit issues, bankruptcy, or limited credit history.

License compliance bonds typically cover regulatory violations and consumer protection, but may not cover warranty obligations. Check your state requirements and consider additional warranty bonds if needed.