What is a license or permit bond?

A compliance bond required to be licensed or pull permits. It guarantees you will follow the rules and pay valid claims, protecting the public and the agency rather than you.

How much does a license bond cost?

You typically pay a percentage of the bond amount, based on the required amount and your credit. Most license and permit bonds are inexpensive and quick to obtain.

Is a license bond insurance?

No. A bond guarantees a third party that you will meet an obligation, and if the surety pays a claim you repay it. Insurance protects you against your own losses.

Contractor License & Permit Bonds

The compliance bonds licensing requires.

Many states and municipalities require a license or permit bond before you can be licensed or pull permits. It is a compliance guarantee, not insurance for you, and it is usually quick to obtain. Here is what it does and how we place it.

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A license or permit bond is a compliance bond required by a state licensing board or local jurisdiction. It guarantees that you will operate within the rules and pay valid claims if you do not. Amounts and requirements vary by state and license type and should be verified with the licensing board.

What a license or permit bond does

It is a three-party guarantee: the surety promises the licensing board or municipality (the obligee) that you, the contractor, will follow the rules. If you violate them and a valid claim results, the surety pays and you repay the surety. It protects the public and the agency, not you, which is the key difference from insurance, and it is a routine cost of being licensed.

Amounts and requirements vary

Bond amounts and the situations that require them differ by state, by municipality, and by license type and class. A general building license, a specialty trade license, and a local permit can each carry different bond requirements. Because this is a compliance matter, the specific requirement should be verified with your contractor licensing board before you rely on any summary.

How we handle it

We identify the bond your license or permit actually requires, place it quickly, since most license and permit bonds are straightforward to obtain, and keep it coordinated with your insurance so your full set of obligations is met. For contract bonds, bid, performance, and payment, see contractor surety bonds.

The compliance bonds licensing requires.

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What a license or permit bond does

Amounts and requirements vary

How we handle it

Common questions.

Not sure what bond your license requires?

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Surety Bonds

Licensing & Compliance

Contractor Bonds

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