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 North Dakota
North Dakota licenses contractors through the Secretary of State for jobs over $4,000 under N.D.C.C. ch. 43-07. Applicants must file a certificate of liability insurance and workers' compensation proof; the license law does not require a surety bond.
- Some cities require their own license or permit bond; for example, Bismarck requires contractors working in city right of way to be city-approved, licensed and bonded.
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.