Insurance Companies We Work With
Home›Contractors›Compliance›Contractor License Bond Guide
License Bonds

How license and permit bonds work for contractors.

License and permit bonds are required by many states and municipalities as a condition of licensing or permits. They are compliance guarantees, not insurance for you. Here is how they work, with the reminder to verify amounts with your board.

Get a quote Compare your coverage

Ready for terms? Get a quote. Want to find the gaps first? Compare your coverage.

A license or permit bond guarantees a licensing board or jurisdiction that you will operate within the rules and pay valid claims if you do not. It protects the public and the agency, not you. Amounts and requirements vary by state, jurisdiction, and license type and should be verified.

What a license bond does

It is a three-party guarantee among you, the surety, and the licensing board or jurisdiction. If you violate the rules and a valid claim results, the surety pays and you repay the surety. It is the opposite of insurance in that respect, and it is a routine, usually inexpensive cost of being licensed.

Amounts and types vary

Bond amounts and the situations requiring them differ by state, municipality, and license class, and renewals can change them. Verify the current requirement with your licensing board before relying on any figure.

How we help

We identify the bond your license or permit requires and place it, often online in minutes, and coordinate it with your insurance. This is general information, not legal advice. Rules vary by state and contractor type and should be verified with the licensing board, the relevant state agency, your contract, and your carrier.

Frequently asked

Common questions.

Is a license bond the same as insurance?
No. It guarantees the board or public that you will follow the rules, and if the surety pays a claim you repay it.
How much is a license bond?
You typically pay a percentage of the required amount, based on the amount and your credit. Most are inexpensive and quick.
Where do I get one?
We place license and permit bonds, often online in minutes through our bond tool, and coordinate them with your coverage.
Compare your coverage

Make sure your coverage meets the requirement

Licensing, bonds, and workers comp all point to specific coverage. We confirm your insurance lines up.

Compare your coverage Get a quote
We line up insurance and bonds with requirements
We help with bonds and subcontractor transfer
We flag where a rule points to missing coverage
You get a clear read, no obligation
Related resources

Keep going.

Compliance

Compliance Hub

All contractor compliance topics.

Coverage

Contractor Bonds

License, permit, and contract bonds.

Coverage

Workers Compensation

Class codes, audits, and subs.
Independent, contractor-first

Line your coverage up with what you must prove.

Tell us your requirement and we will make sure your insurance and bonds match.

Get a quote Compare your coverage