What a contractor license bond is
Some states, and many cities and counties, make contractors post a bond to get or renew a license. It protects customers, workers and the public if the contractor breaks the licensing laws, for example by abandoning a job or not paying workers. The contractor repays the surety for any claim it pays.
In Idaho
Idaho contractor registration under Idaho Code § 54-5210 needs liability insurance but no surety bond. Plumbing contractors are different: the plumbing board may require a compliance bond of up to $2,000 under Idaho Code § 54-2606.
- A corporate industry group bond acceptable to the board may be used in place of an individual plumbing bond.
You need this bond if you're
- A contractor applying for a new license
- A contractor renewing or reactivating a license
- A business changing its entity type or qualifier
- A contractor starting work in a city or county that requires its own bond
What the surety looks at
Basic business and owner details. Most license bonds need a credit check but no financial statements.