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.
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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.
Common questions.
Is a license bond the same as insurance?
How much is a license bond?
Where do I get one?
Make sure your coverage meets the requirement
Licensing, bonds, and workers comp all point to specific coverage. We confirm your insurance lines up.
Line your coverage up with what you must prove.
Tell us your requirement and we will make sure your insurance and bonds match.