States have been raising surety bond requirements at a pace we haven't seen in years. If you hold a contractor license bond or notary bond, your required bond amount may have doubled or tripled since your last renewal.
Here's a state-by-state breakdown of the biggest changes in 2025 and 2026, with sources so you can verify the details yourself.
Washington: Contractor Bonds Tripled
Effective date: July 1, 2024
Washington passed the biggest contractor bond increase in recent memory. Under 2SHB 1534, general contractor bonds jumped from $12,000 to $30,000. Specialty contractor bonds went from $6,000 to $15,000.
This was the first increase in 23 years. The previous amounts were set in 2001. The change affects roughly 67,000 licensed contractors statewide.
Source: Washington State Department of Labor & Industries (WA L&I), 2SHB 1534.
If you're a Washington contractor, check our Washington contractor license bond page for current requirements and pricing.
What This Means for Your Premium
Your premium scales with the bond amount. If you were paying 1.5% on a $12,000 bond ($180/year), you'll now pay 1.5% on $30,000 ($450/year). See our contractor license bond cost guide for rate estimates by credit tier.
Louisiana: Notary Bond 5x Increase
Effective date: February 1, 2026
Louisiana notary bonds increased from $10,000 to $50,000 under HB 259. The old $10,000 amount hadn't been updated in decades and was widely seen as inadequate — a single real estate closing gone wrong could easily exceed $10,000 in damages.
The law also eliminated the errors and omissions (E&O) insurance option that some notaries used as an alternative. Going forward, the $50,000 surety bond is the only acceptable form of financial responsibility.
Source: Louisiana Secretary of State, HB 259.
California: Contractor Bond Increased to $25,000
Effective date: January 1, 2023
California raised its contractor license bond from $15,000 to $25,000 under SB 607. While this took effect in 2023, many contractors who renewed before the deadline are encountering the higher amount for the first time on their current renewal cycle.
The increase applies to all CSLB-licensed contractors. California also requires a separate $15,000 bond for contractors with outstanding judgments, which was not affected by this change.
Source: Contractors State License Board (CSLB), SB 607.
Alabama: Notary Bond Doubled
Effective date: September 2023
Alabama doubled its notary bond requirement from $25,000 to $50,000 under SB 322. The state joins a growing trend of states raising notary bond amounts to reflect the actual financial exposure notaries carry.
Source: Alabama Secretary of State, SB 322.
For current requirements and pricing, see our Alabama notary bond page.
New Jersey: Tiered Home Improvement Contractor Bond
Reported effective date: April 2025
Note: This change has been widely reported in industry sources, but we have not been able to independently verify it through an official New Jersey .gov publication. We're including it here as industry-reported information. If you're a New Jersey contractor, confirm directly with the NJ Division of Consumer Affairs.
New Jersey reportedly introduced a tiered surety bond requirement for home improvement contractors, with amounts based on annual gross receipts:
- $10,000 bond — gross receipts under $500,000
- $25,000 bond — gross receipts $500,000 to $1 million
- $50,000 bond — gross receipts over $1 million
The Trend Is Clear: Bond Amounts Are Going Up
Most state bond amounts were set 10 to 25 years ago. Inflation, rising property values, and higher-dollar claims are driving states to update these figures. Expect more states to follow in 2026 and 2027.
The good news: higher bond amounts don't always mean dramatically higher premiums. If your credit is solid, you're typically paying 1% to 3% of the bond amount annually. The premium increase from a $12,000 to $30,000 bond is real, but it's not catastrophic.
See our notary bond cost guide for premium estimates on the new amounts.
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