Do I need a contractor bond?

Whether or not you need a contractor bond depends on your local state regulations. Every state and licensing board has their own rules. Below are a list of states that require some form of contractor license bond to become a contractor.

  • Alabama
  • Alaska
  • Arizona
  • Arkansas
  • California
  • Colorado
  • Connecticut
  • Delaware
  • District of Columbia
  • Florida
  • Georgia
  • Hawaii
  • Idaho
  • Illinois
  • Indiana
  • Iowa
  • Kansas
  • Kentucky
  • Louisiana
  • Maine
  • Maryland
  • Massachusetts
  • Michigan
  • Minnesota
  • Mississippi
  • Missouri
  • Montana
  • Nebraska
  • Nevada
  • New Hampshire
  • New Jersey
  • New Mexico
  • New York
  • North Carolina
  • North Dakota
  • Ohio
  • Oklahoma
  • Oregon
  • Pennsylvania
  • Rhode Island
  • South Carolina
  • South Dakota
  • Tennessee
  • Texas
  • Utah
  • Vermont
  • Virginia
  • Washington
  • West Virginia
  • Wisconsin
  • Wyoming
Sample CA Contractor Bond Form
Sample CA Contractor Bond Form

How much does a contractor bond cost?

Our prices for contractor bonds are based on the bond amount required by the states. Prices start at 0.05% of the bond amount. For a $25,000 bond (most common), prices for a 1 year bond starts at $125.

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Contractor License Bond FAQs

Is a credit check required for a contractor bond? 

Yes, when issuing a contractor bond, insurance companies will typically conduct a "soft credit check" on individual contractors to determine price and eligibility. It's important to note that this type of credit check will not have any impact on an individual’s credit score. 

What information is collected? 

The following information is collected to determine the eligibility and pricing of a contractor bond:

  • Contractor’s business name and DBA if applicable
  • Business address
  • Contractor Year’s of Experience
  • Contact number
  • Owner(s) name, and SSN 

How do I prove that I’m bonded?

We’ll send you via email a PDF copy of the bond once it’s been processed. This will serve as proof that you are bonded.

What if I have bad credit?

Generally speaking, a credit score under 650 is considered “bad credit”. We have several insurance partners that specialize in this market, so if you have a less than perfect credit score we can help. Give us a call and we’ll shop around to get you the lowest possible quote.

What goes into the price of a contractor bond?

The cost of a contractor bond is influenced by a variety of factors, including the contractor's credit score, years of experience, and the insurance company offering the bond.

For example, in California, a $25,000 bond is required, and costs between $250 to $2000. Contractors with limited experience or poor credit may be subject to higher rates. The chart below offers a quick reference for the approximate cost of a $25,000 bond. 

Why does this bond exist?

We get it. Why do you even need this bond in the first place?

Contractor bonds exist as a means for regulators to protect the public from contractor malpractice. For example, a contractor is accused of installed a leaky roof, but claims that they were not responsible and refuses to fix the leaky roof. In this case, the home owner can sue the contractor in small claims court, but that would take so much effort and time. If this happened in a state with a bond requirement, the homeowner can look up who the contractor is bonded with, give their surety company a call and request an investigation. The surety company acts as a third-party to verify the validity of this claim and make payment as needed.