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What exactly is a contractor license bond?

A contractor has an obligation not to commit any violation of contractor license law that is grounds for disciplinary action against the license. If the contractor does not comply with the conditions of the law, a claim can be filed against his contractor license bond with the surety company. Claims against a surety company may be filed by homeowners, any person damaged by a willful and deliberate violation of a construction contract, employees damaged by the contractor’s failure to pay wages, or an express fund damaged as a result of the contractor’s failure to pay fringe benefits for eligible employees. (A court case has held the express trust fund provision superseded by federal law.)

The exact bond coverage required varies from state to state. If you are unsure about the type and size of bond that you need, you should contact the agency responsible for regulating contractors in your state. Links to those entities can be found in the links listed below. You might also have questions that are answered in our FAQ.

CSIA also offers license bonds to contractors in most Western States including:

To receive a quote for your state, click on the “Get a Quote” button.