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 Washington
Washington contractors must register with the Department of Labor and Industries and file a registration bond. Since July 1, 2024, the bond is $30,000 for a general contractor and $15,000 for a specialty contractor (RCW 18.27.040).
- Before July 1, 2024 the amounts were $12,000 (general) and $6,000 (specialty).
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.