Contractor License Bonds

Contractor license bonds are surety bonds that must be purchased by various types of contractors to ensure ethical business practices and compliance with building codes and other applicable rules and regulations established by a government authority. This type of surety bond is commonly required as a condition of a license or permit granted by a local municipality, county, state or the federal government. Along with insurance, bonding is one step that construction company contractors must take to ensure that their customers are protected. 

For example, to get a new contractors' license in California, you'll need to apply to the California State License Board (CSLB). A surety bond is required by the CSLB to help protect a contractor's customers and ensure that new contractors are competent and financially stable. You'll need to submit your bond to the CSLB as part of your contractors' license application, along with proof of insurance. However, every state licensing board has different rules, so make sure to check with your state and/or local equivalent of the CSLB to learn more about bonding requirements in your state or municipality. 

See our Spotlight article for more on Contractor License Bonds. Please note that if this bond is required for a job that you are bidding or a contract that has been awarded to you, the surety bond you need is a Contract/Construction Bond rather than a Contractor License Bond. Construction contractors should contact Surety Bonds Direct for the fastest and most cost-effective contractors' bonding solutions, with a free quote that usually arrives in just minutes.