Contractor License Bonds
A contractor license bond is a financial guarantee the contractor will adhere to licensing rules and regulations. Required in most states for licensure, a contractor bond protects the public from financial loss should the contractor violate the terms of their license.
You may be required to get bonded if you’re applying to become a licensed:
- General Contractor
- Home Improvement Contractor
- Building Contractor
- Roofing Contractor
- HVAC Contractor
- Electrical Contractor
We offer the following Contractor License Bonds:
Filter Bonds
Contractor License Bond Cost
The cost of a contractor license bond ranges between 1% - 5% of the bond amount, depending on your credit score. This means a $10,000 contractor bond may cost as low as $100 for applicants with excellent credit scores.
The bond amount can vary from $10,000 to more than $100,000. Applicants with strong credit may pay a premium of 1% of the bond amount while applicants with an average credit score can expect to pay a premium between 2% - 5% of the bond amount.
The premium may be as high as 15% for applicants with a low credit score.
How Contractor Bonds Work
A contractor bond is a legal contract among three parties:
- Principal: Contractor applying for licensure
- Obligee: Federal, state, county, or local government requiring the bond
- Surety: Company issuing the bond
Once you’re bonded, you’re responsible for performing your job according to licensing regulations. Anyone who experiences financial damage as a result of your work may make a claim against your bond.
A claim may be made against you for any of the events:
- Failure to pay for labor and materials
- Failure to follow licensure requirements
- Failure to fulfill obligations
- Engaging in fraudulent activities on the job
The surety company that issued the bond will investigate the claim. If damages are awarded, you will be required to reimburse the surety.
Contractor License Bond Requirements
When applying for a contractor bond, NNA Surety will first evaluate your financials and business to ensure you’re qualified to fulfill the obligations of the bond.
To qualify for a contractor license bond, follow the steps below:
- Apply for a free quote.
- Fill out the contractor's license bond application.
- Sign the contract.
- Pay your premium.
- Receive your bond.
Contractor license bonds typically have a one-year term and need to be renewed to keep your license active. Any lapse in your bond may result in the suspension of your license.
Get Your Contractor License Bond
Contractor license bonds are available through NNA Surety in the following states: Alabama, Alaska, Arizona, Colorado, Florida, Georgia, Indiana, Mississippi, Montana, Nevada, New York, North Carolina, North Dakota, Ohio, Oregon, South Carolina, Tennessee, Texas, Utah, Washington, and Wyoming.
Get bonded with NNA Surety today by calling 855-339-6183 or sending us an email.