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.