Skip Navigation

Louisiana Contractor License Bonds

What is a Louisiana Contractor License Bond?

Louisiana does not have a mandatory state level contractor surety bond requirement. However, if you don't meet the net-worth requirement, you will have to purchase a surety bond to have your state license issued. At a local level, Louisiana has several of city level bonding requirements before work can be completed in those city limits.

A contractor surety bond is a type of insurance required by a state, county, or city before a license can be issued or work on a project can begin.

The surety bond acts as a financial guarantee that you'll:

  • Follow all contractor laws, rules, and regulations in the state and at the local level
  • Fully complete projects for your customers according to the contract

By purchasing a Louisiana contractor bond, you're making this promise to the Louisiana State Licensing Board for Contractors (the Board), the local government contracting authority, and to your customers.

Get Your Louisiana Contractor Bond

Contractor License Bond - State Requirement
Contractor License Bond - Filed with City, County or Other Local Government

Bonds up to $25,000

1-Year Bond Starts at $100.00
1.0%-1.8% of the Bond Amount

2-Year Bond Starts at $175.00
1.0%-1.8% of the Bond Amount

Can't find what you need?

Let our bond experts help!

Get Started »
No obligation, takes 2 minutes

If you'd prefer, call us at 1-800-608-9950

Who Is Required To Purchase a Louisiana Contractor Bond?

At the state level, contractors are required to meet a minimum net-worth of $10,000 before a license can be issued.

If you're unable to meet the $10,000 net-worth figure, you can purchase a $10,000 surety bond to satisfy the net-worth requirement.

At the local level, there are many bonding requirements depending on the city and township.

Here are some of the cities that require a contractor surety bond:

  • Parish of Ascension
  • City of Lake Charles
  • City of Zachary
  • City of Gonzales
  • Easy Baton Rouge Parish
  • City of Central
  • City of Denham Springs
  • City of Sulphur

This is not an exhaustive or all-inclusive list of required contractor bonds. When you go to pull permits for any given project, you'll learn if a surety bond is required.

If you don't see the bond you need on this page, we can still help you get bonded. Just fill out our quote form (or call 1-800-608-9950), tell us about the bond you need and we'll help get the process done fast and ensure you pay less.

The Louisiana Contractor License Bond Amounts

A contractor surety bond has an amount associated with it. This amount is the total coverage available to customers in the event a valid claim is made against the contractor.

Keep in mind the "customer" can be a county or city government if the project is a public project or if you're required to pay sales taxes on completed projects.

These amounts are set by the contracting authority responsible for issuing licenses and permits. The amount is determined based on all recorded claims against contractors from prior years.

Bond Type Bond Amount
Ascension Parish $5,000
City of Lake Charles $7,000
City of Zachary $5,000
City of Gonzales $5,000
East Baton Rouge Parish Contractor Variable
East Baton Rouge Parish Electrical $5,000
East Baton Rouge Parish Fence Contractor $1,000
East Baton Rouge Master Plumber $5,000
City of Denham Springs $5,000
City of Sulphur $15,000

Let's recap, the bond amount is the maximum available coverage in the event of a legitimate claim made against the bond.

In most cases, contractors resolve mistakes or disagreements before issues ever escalate to a claim. But it's good to understand the reality of bond claims.

Contract And Performance Contractor Bonds

It's good to know about contractor and performance bonds.

If you're taking on a project for a municipality or local project owner, you may be required to purchase a contract or performance bond (sometimes called permit bonds).

At a high level, this type of contractor bond is a guarantee that you will:

  • Follow the contract
  • Pay all subcontractors
  • Complete the project according to the agreed upon timeline

Although these bonds only remain active for the life of the project, there is usually a grace period after completion of the project in which a claim can be made against infractions during the term of the project.

Learn more about these contract and performance bonds:

How Much Does a Louisiana Contractor License Bond Cost?

Typically a contractor bond is determined from a rate quoted by a surety.

A surety is an insurance company that underwrites the surety bond. Each surety performs an independent assessment to determine a rate using factors such as:

  • Personal credit of the owner or owners
  • Contracting experience and industry experience
  • Any prior bond claims if owners have been licensed in the past

BOX -- This rate multiplied by the bond amount is the price you pay.

This is why working with a specialized surety agency is the best way to purchase a contractor license bond.

Not only will you save money, you'll save time, and your pricing will likely not be based on your personal credit.

How to Not Overpay for a Contractor Bond

Here's how easy it is to purchase your Louisiana contractor bond.

For nearly every bonding requirement we've secured low, fixed priced bonds with zero credit check required.

This means you can get instant pricing based on your bond amount and purchase the bond you need for your project today. Once the bond is purchased, it's usually issued within 24 hours of purchase.

Louisiana $10,000 Contractor Bond

For the $10,000 contractor license bond in lieu of the net-worth requirement, the pricing is fixed at $100.

Bond Type Bond Amount Get Pricing
Contractor License Bond $10,000

Purchase Your Bond Today

Louisiana Local Contractor Bonds

For the local bonds, the pricing is as follows for all bonds up to $25,000:

  • A 1 year bond term starts at $100 and will be 1% to 1.8% of the required bond amount
  • A 2 year bond term starts at $175 and will be 1% to 1.8% of the required bond amount

These local bonds can be priced for you immediately when you request your quote and you can instantly purchase your bond.

Issuing your bond will take less than one business day.

Remember if you don't see the bond you need, we can still help. Fill out our online bond quote form and tell us about the bond you need or call a bond specialist today at 1-800-608-9950.

Why is a Louisiana Contractor Bond Required?

Contractors at the state, a county, and/or city level are required to go through a license or permitting process.

This provides a set of standards for contractors in Louisiana:

  • Accumulated a minimum level of experience
  • Passed any required exams
  • Registered the proper business forms
  • Purchased the required insurance policies

The contractor license bond is another tool licensing departments and agencies use to hold contractors accountable to the promises they are making to their customers.

What Does a Louisiana Contractor Bond Protect Against?

Remember, the contractor bond (surety bond) is a type of insurance for the protection of:

  • The state and city
  • Customers of the contractor
  • Hired subcontractors

It's unfortunate, but each year there will be a handful of contractors who will purposefully commit fraudulent acts to make more money on a project.

Examples of misconduct and fraud by a contractor can include:

  • Breaking the terms of a construction project
  • Never finishing projects
  • Taking deposits or down payments and never starting or completing a project
  • Replacing agreed upon materials with cheaper alternatives to increase profits
  • Fail to pay subcontractors for completed work
  • Negligent activity or poor signage when working on a public right of way project
  • Altering contracts or overcharging for changes

If a contractor is deemed guilty of any of these actions, a claim can be made against their contractor license bond for financial repayment as long as the claim is deemed valid.

Remember the amount of coverage only extends to the bond amount.

What Happens After You Purchase Your Bond?

Once you purchase your bond, Surety Bonds Direct's issuance team will prepare your bond with the correct signatures, seals, and the required power of attorney so your bond will be accepted.

Because we work with A-rated sureties, your bond is guaranteed to be accepted by the license or permitting authority.

If, for whatever reason, your bond is rejected, we'll fix the issue or refund your money, no questions asked.

We're allowed to email you the bond after you purchase it. This speeds the process up.

Renewing Your Contractor Bond

Some bonds (permit or right-of-way bonds) may only be required on a per project basis. If this is the case, you may not have to renew the bond. However, if the project lasts longer than one year, in most cases, the bond will need to be renewed.

Many of the city level contractor bonds have a hard expiration date of December 31.

If you need to renew a bond, Surety Bonds Direct makes the process nearly seamless.

Your bond specialist is responsible for managing your bond. This means they will contact you 30 to 40 days in advance to ensure your renewal premium is paid on time and your bond remains active.

Contractor License Bonds Are Continuous

A continuous bond means the original bond remains active as long as you pay the renewal premium.

Most of the time, you never have to worry about having a new bond issued or submitting a new bond back to the Board.

The only time you will have to file a new bond is if we find you lower pricing or the city raises the bond amount, requiring a new bond.

Contractor Bonds And Getting Your Louisiana Business License/Registration

The state and every city has its own licensing requirements. However they typically share the similar steps:

  1. Get your application fees and other payments together
  2. Take any exam to show experience
  3. Fulfill any required years of in-the-field experience
  4. Purchase the required surety bond (if required)
  5. Purchasing the required minimum level of liability insurance coverage
  6. Submit your application review

Here are important links for the Louisiana cities mentioned on this page: