SuretyScout

Contractor license bonds, state by state

A contractor license bond guarantees you'll follow your state's licensing laws. It protects your customers and the licensing board, not you. What it costs, and whether your state even requires one, varies a lot, so start with your state below.

Estimate your premium

You pay a small percentage of the bond amount each year, based on your credit. Enter your state's bond amount to see a ballpark.

$
Your credit
Estimated annual premium
$375–$750

About 1.5–3.0% of a $25,000 bond.

Get your exact quote →

Estimate only. Your real rate is set by the surety after a quick credit check, and the premium is typically nonrefundable once the bond is issued.

Does your state even require one?

Here's the honest answer most sites get wrong: only about half of states require a contractor license bond. The rest use net-worth or financial-responsibility tests, with a bond as an optional alternative. Find your state:

ArizonaCaliforniaFloridaGeorgiaNorth CarolinaNevadaOregonTennesseeTexasUtahVirginiaWashingtonAlabamaAlaskaArkansasColoradoConnecticutDelawareHawaiiIdahoIllinoisIndianaIowaKansasKentuckyLouisianaMaineMarylandMassachusettsMichiganMinnesotaMississippiMissouriMontanaNebraskaNew HampshireNew JerseyNew MexicoNew YorkNorth DakotaOhioOklahomaPennsylvaniaRhode IslandSouth CarolinaSouth DakotaVermontWest VirginiaWisconsinWyoming

Requirements by state

Bond required to get licensed

These states require a surety bond as a condition of your contractor license.

Arizona$1,000–$100,000California$25,000 requiredNevada$1,000–$500,000Oregon$15,000–$80,000Washington$30,000 requiredAlaska$25,000 requiredArkansas$10,000 requiredNew Jersey$10,000–$50,000New Mexico$10,000 requiredOklahoma$5,000 requiredSouth Carolina$15,000 required

Only if you don't qualify financially

No bond if you prove net worth or financial responsibility — a bond is an optional substitute or fallback.

FloridaUsually noneGeorgiaUsually noneNorth CarolinaUsually noneTennesseeUsually noneUtahUsually noneVirginiaUsually noneAlabamaUsually noneConnecticutUsually noneDelawareUsually noneHawaiiUsually noneLouisianaUsually noneMarylandUsually noneNebraskaUsually noneWisconsinUsually none

No statewide bond

The state doesn't license general contractors, so any bond is set locally.

TexasNo state bondColoradoNo state bondIdahoNo state bondIllinoisNo state bondIndianaNo state bondIowaNo state bondKansasNo state bondKentuckyNo state bondMaineNo state bondMassachusettsNo state bondMichiganNo state bondMinnesotaNo state bondMississippiNo state bondMissouriNo state bondMontanaNo state bondNew HampshireNo state bondNew YorkNo state bondNorth DakotaNo state bondOhioNo state bondPennsylvaniaNo state bondRhode IslandNo state bondSouth DakotaNo state bondVermontNo state bondWest VirginiaNo state bondWyomingNo state bond

All 50 states are covered. Amounts are sourced from each state's licensing authority and can change, so confirm the current figure with that authority before you buy.

Contractor license bond FAQ

How much does a contractor license bond cost?

You don't pay the full bond amount. You pay a yearly premium that's usually 1–3% of it with good credit, and more while your credit is building. On a $25,000 bond that's roughly $250–$750 a year for most applicants, and small bonds often carry a minimum premium around $100.

Do all states require a contractor license bond?

No. Only about half of states require one as a condition of your license. The rest either don't license general contractors at the state level (cities and counties handle it) or let you prove net worth or financial responsibility instead, with a bond as an optional substitute.

What does a contractor license bond protect?

It protects your customers and the licensing board, not you. It guarantees you'll follow your state's contractor laws. If you break them and someone is owed money, they can file a claim against the bond, and you have to repay the surety.

Is a contractor license bond the same as insurance?

No. Insurance protects your business. A license bond protects the public and the state. A valid claim against your bond is paid by the surety, but you're responsible for paying the surety back.

How do I get a contractor license bond?

Find your state's required amount below, apply with a licensed surety (they run a soft credit check), pay the premium, and file the bond with your licensing authority. You can get an estimate first with the calculator above.