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Most states require contractors to maintain a surety bond as part of their license.
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What is a Contractor Surety Bond?
A surety bond is a three-party agreement between you (the contractor), the state licensing board (the obligee), and a surety company. It guarantees that you'll follow state laws and regulations. If you violate the terms, consumers can file claims against your bond for compensation.
How Much Does a Contractor Bond Cost?
Contractor bond premiums typically range from 1-10% of the total bond amount, depending on your credit score and business history. A $15,000 bond (common in California) costs most contractors $100-$450 per year.
Which States Require Contractor Bonds?
Most states that license general contractors require a surety bond. California requires a $25,000 bond, Florida requires varying amounts by license type, and requirements differ by state. Use our state lookup pages to check your state's specific requirements.