What States Require a Contractor License Bond

Getting your contractor license comes means checking off a long list of state requirements that can include an official application, an examination, and in most states, getting a contractor license bond. If you have any questions about your license bond requirements, here are the basics that you need to know, and a list of states which require one.

A contractor license bonds is a guarantee as a contractor that you will follow the rules and regulations of your specific contractor license.

A license bond is a three-party, legally enforceable contract between:

  • The contractor (principle)
  • The state licensing agency requiring the bond (obligee)
  • The company who issues and backs the bond (surety)

If a contractor fails to follow the rules and regulations of their license, then the state license board (obligee) can make a claim on the bond and get compensated for damages. If this happens, the contractor is expected to repay the surety company for the money it settled in the claim.

In other words, if you fail to follow the rules of your contractor’s license, a bond guarantees that you will pay the price.

Contractor license bonds may also be known as contractor license performance & payment bonds, or construction contractor bonds.

When Do You Need to Get a License Bond?

A contractor license bond is required for the issuance, reactivation, and maintenance of contractor’s license. Generally, a contractor will apply for a license, and then take an examination. After successfully completing the contractor license examination, a contractor will be required to obtain a contractor license bond. Contractors who are not required to take an examination will submit their license bond along with their license application.

The exact steps to getting licensed and bonded may be different in your state, so check with your contractor license board for details on when you need to obtain a license bond.

Do I Need to Get a License Bond?

Contractors who are properly licensed and bonded will get more opportunities for better jobs because of the guarantee that a contractor license bond provides. When you consider those benefits, every contractor should get a license bond. However, a license bond is not always legally required of every trade in every state. Your specific legal requirements will depend on where you live and what work you plan on doing.

Which States Require Contractor License Bonds?

For easy reference, we’ve compiled a list of contractor license bond requirements by state. Federal, state, and local bond requirements are always changing, however. If you have any questions about whether a license bond is required for your trade, or to do work in your state, contact us for the latest, most up-to-date information.

Alabama Contractor License Bond
Alaska Construction Contractor Bond aka Contractor License bond
Arizona Contractor License Bond
Arkansas Contractor License Bond
California Contractor Bond aka Contractor License Bond
Colorado Contractor License Performance & Payment Bond
Connecticut May be required locally
Delaware Contractor License Performance & Payment Bond
Florida Construction License Bond aka Contractor License Bond
Georgia Contractor License Performance & Payment Bond
Hawaii Contractor License Performance & Payment Bond
Idaho May be required - trade specific
Illinois General contractor, roofers state bond, some local bonds required
Indiana May be required locally
Iowa Contractor License Performance & Payment Bond
Kansas May be required locally
Kentucky May not be required
Louisiana Contractor License Performance & Payment Bond
Maine May not be required
Maryland Contractor License Performance & Payment Bond - Home Improvement
Massachusetts Contractor License Performance & Payment
Michigan Contractor License Performance & Payment - Residential
Minnesota Contractor License Peformance & Payment
Mississippi May be required locally
Missouri Contractor License Performance & Payment
Montana May be required locally
Nebraska May not be required
Nevada Contractor License Performance & Payment
New Hampshire May not be required
New Jersey May be required locally
New Mexico Contractor License Performance & Payment
New York May be required locally
North Carolina Contractor License Performance & Payment
North Dakota Contractor License Bond
Ohio May be required locally
Oklahoma Contractor License Performance & Payment
Oregon Contractor License Performance & Payment
Pennsylvania May be required locally
Rhode Island May not be required
South Carolina Contractor License Bond
South Dakota May not be required
Tennessee Contractor License Performance & Payment - Home Improvement
Texas Contractor License Performance & Payment
Utah Contractor License Performance & Payment
Vermont May not be required
Virginia May be required locally
Washington May be required - trade specific
West Virginia May not be required
Wisconsin May be required - trade specific
Wyoming May be required locally

How to Get a License Bond

Ready to get bonded? We’ve made it easy for you to get your California contractor license bond fast.

All you need to get a contractor license bond is to submit an application with your existing contractor license number, or your license application fee number. Once you’ve applied, you will receive a instant, accurate quote for your license bond from Hunter Insurance Services.

Your personal credit will determine your bond amount, which can range between 1% and 15% of the bond amount.

We will instantly report your bond to the California contractor  license board on your behalf once you’ve submitted your payment to issue the bond. The entire process is completed in minutes.

9855 Prospect Avenue - Suite D
Santee, CA 92071
Phone - 888.815.7639
Fax - 619.465.1926
CDI # OD94594