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 West Virginia
West Virginia's contractor license, issued through the Contractor Licensing Board at the Division of Labor, does not call for a license bond. Separately, W. Va. Code § 21-5-14 requires employers doing construction work to post a wage bond with the Division of Labor unless they qualify for an exemption, and the license application includes a wage bond affidavit.
- The Division of Labor's legislative rule sets the wage bond amount based on payroll; the agency can issue a cease and desist order when a required bond is not posted.
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.