Contractor License Bondsby State — often about $100/yr
Contractor license bonds for every state that requires one. Get licensed and bonded with instant quotes on qualifying bonds under $25,000 — same-day submission. Bidding bonded work too? See contractor bonds for performance and payment bonds.
- Who requires it: The state contractor licensing board (or a city or county in states with no statewide bond); the page lists the requirement for each state.
- Amount: Set by each state, for example California $25,000, Arizona $2,500-$100,000 and Nevada $1,000-$500,000. Pick your state on this page for its exact amount.
- Typical cost (estimate): about $100-$2,500 per year, depending on bond amount and credit. The surety sets the final price.
- Timing: Same-day submission; most quotes within one business day.
Need a different contractor bond type?
Watch: How to Get Your Contractor License Bond in 2026 (From $100/yr) — All 50 States
36 states require a contractor license bond before you can legally operate. Here's the complete guide — bond amounts by state ($1K AZ to $500K NV), what it costs by credit tier, and the 3-step process to get bonded instantly.
Key moments in this video
What is a Contractor License Bond?
A contractor license bond is a type of surety bond required by state or local licensing authorities before issuing a contractor license. When you buy a surety bond, it guarantees that contractors will comply with licensing laws, complete projects according to contracts, and pay subcontractors and suppliers.
Bond amounts vary by state, from as low as $1,000 up to $500,000 (Nevada's statutory range under NRS 624.270). Unlike insurance, contractors must reimburse the surety for any claims paid against their bond. All bonds are issued through U.S. Treasury-listed carriers.
Bond vs Insurance: Key Differences
- • Protects the public/government
- • You must repay claims
- • Required for licensing
- • Costs 1-3% of bond amount
- • Protects your business
- • Insurer pays claims
- • Required for operation
- • Varies by coverage type
Most states require BOTH a bond AND insurance to operate legally.
Contractor License Bond Cost
Bond premiums are calculated as a percentage of the required bond amount, typically 1-3% annually with good credit. For a deeper dive into pricing factors, credit tiers, and money-saving strategies, read our contractor license bond cost guide or see our general surety bond cost overview.
| Bond Amount | Good Credit (700+) | Fair Credit (600-699) | Poor Credit (<600) |
|---|---|---|---|
| $5,000 | $50-$150/yr | $150-$250/yr | $250-$500/yr |
| $10,000 | $100-$300/yr | $300-$500/yr | $500-$1,000/yr |
| $25,000 | $250-$750/yr | $750-$1,250/yr | $1,250-$2,500/yr |
| $100,000 | $1,000-$3,000/yr | $3,000-$5,000/yr | $5,000-$10,000/yr |
Instant Quotes: Many bonds under $25,000 can be quoted instantly online.Use our contractor license bond calculator →
$25,000 Contractor Bond Cost by Credit Score
Based on a $25,000 bond amount
- Excellent (750+)Rate: 1–2%$250–$500/yr
- Good (700–749)Rate: 2–3%$500–$750/yr
- Fair (650–699)Rate: 3–5%$750–$1,250/yr
- Poor (600–649)Rate: 5–7%$1,250–$1,750/yr
- Bad Credit (<600)Rate: 7–10%$1,750–$2,500/yr
Rates are estimates based on a $25,000 contractor license bond. Actual premiums depend on credit score, financial history, and state. Many contractor license bonds don’t require a credit check, and bonds under $25,000 may qualify for instant quotes.
Contractor Bond Requirements by State
36 states require contractor license bonds. Click your state for specific requirements.
All other states
Bond requirements, state-specific statutes, and licensing pathways for the remaining 34 jurisdictions.
Bonds by Contractor Trade
Select your specialty for trade-specific requirements
General Contractor Bonds
For general construction
Residential Contractor Bonds
Home building focus
Commercial Contractor Bonds
Commercial projects
Electrical Contractor Bonds
Electrical trade
HVAC Contractor Bonds
Heating & cooling
Plumbing Contractor Bonds
Plumbing trade
Roofing Contractor Bonds
Roofing trade
Mechanical Contractor Bonds
Mechanical systems
Trade-Specific Bond Requirements Guides
Each trade carries its own licensing board rules, bond amounts, and credit-underwriting quirks. Read the guide for your specialty before you apply.
State licensing boards, bond amounts & exam requirements
HVAC Contractor Bond RequirementsEPA 608 overlap, EPA-tied state bonds, dual-trade bonding
Mechanical Contractor Bond RequirementsHVAC, piping & plumbing overlap — when you need multiple bonds
Plumbing Contractor Bond RequirementsJourneyman vs. master license bond distinctions by state
General Contractor Bond RequirementsGC vs. subcontractor bonding, Miller Act thresholds
Concrete Contractor Bond RequirementsDOT prequalification bonds, municipal pour requirements
Painting Contractor Bond RequirementsHIC registration bonds, lead abatement endorsements
Landscaping Contractor Bond RequirementsPesticide applicator bonds, irrigation & hardscape licensing
Flooring Contractor Bond RequirementsSpecialty subcontractor bonds, HIC registration states
Drywall Contractor Bond RequirementsFraming & drywall classification bonds, commercial minimums
Excavation Contractor Bond RequirementsEarthwork, grading & demolition bond rules; environmental regs
Already bonded and renewing? See our contractor license bond renewal guide — a 4-scenario renewal underwriting guide covering rate changes, credit re-pulls, lapsed bonds, and multi-state renewals.
Several states have raised contractor bond amounts in recent years -- California to $25,000 (January 2023) and Washington to $30,000/$15,000 (July 2024). See our state bond changes summary to confirm your current requirement.
How to Get Licensed and Bonded
Check Requirements
Determine your state and local contractor bonding requirements and bond amount.
Complete Education
Finish any required pre-licensing education or trade exams for your state.
Get Your Bond
Purchase your contractor license bond online. Instant quote for most bonds under $25K.
Submit Application
File your bond certificate with your license application and pay licensing fees.
Get Insurance
Obtain required contractor insurance (general liability, workers comp).
Licensed? The bonds you'll need to win jobs
Your license bond gets you licensed. Bigger jobs, public work and most commercial contracts add contract bonds. We place license and contract bonds, so you can keep one agency as your work grows.
Bid bonds →
Most public bids, and many private ones, require a bid bond (often 5% to 10% of the bid) with your proposal.
Performance bonds →
Once you win, the owner usually requires a performance bond guaranteeing the job gets finished.
Payment bonds →
Guarantees your subcontractors and suppliers get paid. Usually required alongside the performance bond on public work.
Performance & payment bonds →
Most public contracts ask for both bonds together, each commonly at 100% of the contract price.
Frequently Asked Questions
What is a contractor license bond?
A contractor license bond is a surety bond required by state licensing authorities. It guarantees compliance with licensing laws and protects consumers from contractor fraud or abandonment. Bond amounts vary by state ($1,000-$500,000).
How much does a contractor license bond cost?
Costs range from $100-$2,500 annually depending on bond amount and credit. Most states require $5,000-$25,000 bonds. With good credit, expect 1-3% of bond amount (e.g., $15,000 bond = $150-$450/year).
How do I get licensed and bonded?
(1) Determine your state requirements, (2) Complete pre-licensing education/exams, (3) Purchase your bond online (instant quotes available), (4) Submit bond certificate with license application, (5) Obtain required insurance.
Can I get a bond with bad credit?
Yes. Many contractor bonds under $25,000 can be quoted instantly online, and higher-risk programs are available for challenged credit, usually at a higher premium.
What's the difference between a bond and insurance?
A bond protects the public (you repay claims). Insurance protects you (insurer pays claims). Most states require BOTH a license bond AND liability insurance.
Do contractors need a bond?
In 36+ states, yes — you cannot get or renew a contractor license without a surety bond. States like California ($25,000), Arizona ($2,500-$100,000), and Nevada ($1,000-$500,000) all require bonds. Some states like Texas and Ohio don't require a state-level bond but individual cities may. Check your state's contractor licensing board to confirm requirements.
What does "licensed and bonded" mean for a contractor?
"Licensed" means the contractor holds a valid state or municipal license to perform construction work. "Bonded" means they have purchased a surety bond that protects consumers if the contractor violates licensing laws, commits fraud, or abandons a project. Together, "licensed and bonded" signals that a contractor has met their state's regulatory requirements and has financial backing behind their promise to follow the rules.
Are contractors required to be bonded?
It depends on your state. 36+ states require contractor license bonds as a condition of licensing. Bond amounts range from about $1,000 (Nevada's statutory minimum) to $500,000 (Nevada's statutory maximum). States without a state-level bond requirement (like Texas, Ohio, and Indiana) often have city or county bond requirements instead. Federal construction contracts above the Miller Act threshold (40 U.S.C. 3131) also require performance and payment bonds.
How do contractor bonds work?
A contractor bond is a three-party agreement: you (the contractor) purchase the bond, the state licensing board (the obligee) requires it, and a surety company guarantees it. If you violate licensing laws — abandoning a project, failing to pay subcontractors, committing fraud — a consumer or the state can file a claim against your bond. The surety pays the claim up to the bond amount, then you must reimburse the surety. The bond stays in force as long as you maintain your license.
How much is a contractor license bond in California?
California requires a $25,000 contractor license bond under BPC 7071.6 (increased from $15,000 via SB 607 in 2023). The annual premium costs $250-$750 with good credit (1-3% of bond amount). LLCs need an additional $100,000 employee/worker bond under BPC 7071.6.5. Disciplinary bonds range from $25,000-$250,000 if the CSLB has taken action against your license.
How to get a contractor license bond?
Apply online at BuySuretyBonds.com — select your state, enter your license classification, and complete the application. Many bonds under $25,000 get an instant quote. Larger bonds may require a brief underwriting review (typically same-day). You pay nothing until your bond is issued. Once approved, download your bond certificate and file it with your state licensing board as part of your license application.
How often do contractors need to renew their bond?
Most contractor bonds renew annually — you pay a premium each year to keep the bond active. Some states use 2-year or 3-year license cycles, and your bond term matches. A few states (like Ohio for municipal bonds) use continuous bonds with no expiration. Your surety sends renewal reminders before expiration. If your bond lapses, your license is typically suspended until a new bond is filed.
Can I buy a contractor license bond online?
Yes. Most contractor license bonds can be purchased entirely online with instant quotes for bonds under $25,000. Apply at BuySuretyBonds.com, apply in minutes (no financial statements needed for standard amounts), and download your bond certificate once it is issued. The bond is delivered digitally, written on the form your state licensing board requires.
Where can I buy a contractor license bond?
Buy your contractor license bond directly online from BuySuretyBonds.com. We place bonds through Treasury-listed surety carriers. No office visit needed — apply online and receive your bond certificate digitally, written on the form your state contractor licensing board requires.
What happens after I apply?
A licensed agent submits your application the same day it arrives. Timing after that depends on the carrier and on your state's bond amount and your credit. The carrier decides approval and the final premium, and you pay only when the bond is issued. Once it is issued, you file the bond certificate with your licensing board.
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All content is researched from official state and federal sources (.gov). BuySuretyBonds.com works with Treasury-listed surety carriers.