Contractor License Bond — The Bond You Need to Operate Legally
A contractor license bond guarantees that a contractor will follow the laws, regulations, and codes required by their state or local licensing authority.
Purpose of a contractor license bond:
To protect consumers and the public from negligent or non-compliant contractors.
Why it’s helpful:
Allows you to get or renew your contractor’s license
Provides reassurance to homeowners, GCs, and regulators
Helps maintain good standing with licensing boards
Where it’s required:
Many states require license bonds for electricians, plumbers, roofers, HVAC contractors, general contractors, and specialty trades.
Bottom line:
If your trade requires a license, you almost always need a license bond. It’s a core part of doing business legally.