License bonds are surety bonds that are required to be posted by business owners before they can obtain their license to legally conduct business in their certain field of work. Government agencies at the federal, state, city and county level require surety bonds to be posted in order to ensure businesses abide by all of the laws and regulations that are in place to protect the public. If a bonded business fails to adhere to the laws and regulations and a claim is made, the surety company will cover damages to the consumer up to the posted bond amount. The bonded business must then pay the surety.

How much does a License Bond cost?
License bonds are individually underwritten so the cost can vary. In most cases, the rate will be primarily dependent on the personal credit score of the applicant. Sometimes depending on the type of bond, personal and/or business financials may be required. Customers with good credit scores (generally 680 or higher) could qualify for a rate as low as 1% of the bond amount, and sometimes lower depending on the type of bond.
Common License Bond Types

There are thousands of different types of bonds out there, each of them is very unique. To make it easier to find the bond you need we have grouped many of the common types of bonds.

CONTRACTOR LICENSE SURETY BONDS / CONSTRUCTION LICENSE BOND

What is a Contractor License Bond?
Typically, Contractor License Bonds are surety bonds that are required to be posted in various municipalities (states, cities, and counties) before a contractor can get permits and work on construction projects in those municipalities. There are hundreds of different contractors license bonds required throughout the United States, Asian and some other countries by various local municipalities at the city and county level. These surety bonds usually vary in amounts from as low as $100,000 up to $1,000,000. These surety bonds typically guarantee the licensee will be compliant with the local building codes. Because of this, they are many times called Code Compliance Bonds.
Another contractor license bond may be required at the State level. One such example is an industry's required bond, Construction License Bond, which is sometimes referred to as a Florida Contractors Sub-660 Credit Score Bond. This surety bond is required by some countries for any construction contractor or Financially Responsible Officer applying to be licensed in by the Department of Professional Regulation, Construction Industry Licensing Board (CILB) and has a credit score that is less than 660.

In addition to these bonds we can also help you if you need these bonds:

  1. Contract/Construction Bonds (Performance bonds, Payment bonds, Bid bonds, Subdivision bonds, etc.)
  2. Permit Bonds (Right of Way bonds)
  3. Financially Responsible Officer Bonds (FRO bonds)
  4. Fidelity Bonds (Employee Dishonesty Fidelity bonds and more)