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M. BURR KEIM AGENCY · License & Permit Surety Bonds · Reviewed November 2026

General Trade License and Permit Bond

A local license and permit bond guarantees that a licensed trade business will follow municipal rules and pay amounts owed under its license. Cities, townships, boroughs, and counties often require one before issuing or renewing a contractor or trade license.

Apply for This Bond Online How to Apply Questions

At a glance

Product
General Trade License and Permit Bond
Category
License & Permit Surety Bonds
Required amount
The required amount is set by the city, township, borough, or county issuing the license. Common local trade bond amounts range from a few thousand dollars to $25,000 or more, and the licensing office should state the exact amount and obligee on the application instructions.
Online issue
Instant issue up to $25,000. With acceptable credit, instant issue is available above $25,000 up to $100,000. Most general trade bonds are issued immediately online when the bond amount and credit profile fit CNA Surety’s instant-issue guidelines.
Term
Bonds are usually written for a one-year term and renewed annually. Some municipalities require a bond that runs for the full license period or a specific expiration date, so confirm the term required by the licensing office.

Who needs a general Trade License and Permit Bond?

  • Electricians, plumbers, HVAC contractors, roofers, and other trade businesses applying for a local business license.
  • Contractors required to file a surety bond with a city, township, borough, or county licensing office.
  • Businesses renewing a local license where the municipality requires a bond to remain in force.

Why is a general Trade License and Permit Bond required?

Local governments use license and permit bonds to protect the public and the municipality. If the licensed business fails to comply with local ordinances, abandons a job, or fails to pay permit-related obligations, a claim can be made against the bond up to the bond amount.

The bond is a three-party agreement between the surety, the licensed business (the principal), and the licensing authority (the obligee). It is not general liability insurance and does not cover every business risk, so contractors should carry separate insurance for property damage, bodily injury, and completed operations.

How much bond do I need?

The required amount is set by the city, township, borough, or county issuing the license. Common local trade bond amounts range from a few thousand dollars to $25,000 or more, and the licensing office should state the exact amount and obligee on the application instructions.

Instant issue up to $25,000. With acceptable credit, instant issue is available above $25,000 up to $100,000. Most general trade bonds are issued immediately online when the bond amount and credit profile fit CNA Surety’s instant-issue guidelines.

Bond amount is not the premium. The required amount is the maximum the surety could pay under the bond. The premium you pay is a separate charge based on the bond amount, the risk, the term, and your credit. The online application shows the premium before you bind coverage.

How much does a general Trade License and Permit Bond cost?

The premium is a small percentage of the bond amount and depends on the bond amount, the licensing jurisdiction, the term, and the applicant’s credit. A $10,000 local trade bond usually costs far less than the bond amount. Apply online for the current premium before you pay a licensing fee.

How to apply online

  1. Confirm the bond amount and obligee. Use the amount and legal name of the agency, court, client, or government entity that requires the bond. The obligee name must match the requiring party’s records.
  2. Gather the application information. Have the legal business or entity name, address, license or case number, ownership information, and the required bond amount ready.
  3. Start the CNA Surety application. Use the online application link on this page. The link includes the M. BURR KEIM AGENCY app code and agency code, so the application is routed to our agency.
  4. Pay the premium and bind coverage. If the bond is eligible for instant issue, the application will show the premium and let you complete the purchase online. Otherwise, the surety will review the application and contact you if additional information is needed.
  5. File the bond. Provide the issued bond to the agency, court, client, or government entity that requires it, and keep a copy for your records.
Apply for This Bond Online All Bonds

General Trade License and Permit Bond term and renewal

Bonds are usually written for a one-year term and renewed annually. Some municipalities require a bond that runs for the full license period or a specific expiration date, so confirm the term required by the licensing office.

Good to know

  • Have the exact bond amount and the legal name of the obligee — the city, township, borough, or county — before applying. The obligee name must match the licensing office’s records.
  • If you hold licenses in several municipalities, you may need a separate bond for each obligee, or a bond form that lists multiple obligees. Apply online and describe the additional requirements in the application.

General Trade License and Permit Bond questions

A local license and permit bond guarantees that a licensed trade business will follow municipal rules and pay amounts owed under its license. Cities, townships, boroughs, and counties often require one before issuing or renewing a contractor or trade license.

Electricians, plumbers, HVAC contractors, roofers, and other trade businesses applying for a local business license. Contractors required to file a surety bond with a city, township, borough, or county licensing office. Businesses renewing a local license where the municipality requires a bond to remain in force.

The premium is a small percentage of the bond amount and depends on the bond amount, the licensing jurisdiction, the term, and the applicant’s credit. A $10,000 local trade bond usually costs far less than the bond amount. Apply online for the current premium before you pay a licensing fee.

The required amount is set by the city, township, borough, or county issuing the license. Common local trade bond amounts range from a few thousand dollars to $25,000 or more, and the licensing office should state the exact amount and obligee on the application instructions. Instant issue up to $25,000. With acceptable credit, instant issue is available above $25,000 up to $100,000. Most general trade bonds are issued immediately online when the bond amount and credit profile fit CNA Surety’s instant-issue guidelines.

Apply online through CNA Surety using the application link on this page. The link includes the M. BURR KEIM AGENCY app code and agency code, so the application is routed to our agency. Complete the application, pay the premium online if the bond is eligible for instant issue, and then file the bond with the agency, court, or client that requires it.

You will need the business legal name and address, the license type, the exact bond amount, and the legal name of the city, township, borough, or county requiring the bond. The online application also asks for ownership and credit information so the surety can decide whether the bond can be issued instantly.

No. A license and permit bond protects the municipality and the public if the licensed business fails to meet its obligations. General liability insurance covers third-party bodily injury and property damage. Most contractors need both, and the licensing office can confirm which coverage it requires.

Online application and important note

Bond requirements, forms, amounts, and fees are set by the requiring agency, court, or carrier and can change. This page is general information, not legal advice. Confirm the current requirement with the agency, court, client, or your attorney before applying. M. BURR KEIM AGENCY is an insurance and surety bond agency; the bond or policy is issued by the carrier named on the document.