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

State Contractor License Bond

A state contractor license bond is a surety bond required by a state licensing board before a contractor can be licensed to perform work in that state. The bond gives the state and the public a way to recover certain losses caused by a licensed contractor’s failure to follow licensing laws.

Apply for This Bond Online How to Apply Questions

At a glance

Product
State Contractor License Bond
Category
License & Permit Surety Bonds
Required amount
Each state licensing board sets its own bond amount. Fixed amounts commonly range from $5,000 to $100,000 or more, and some states use a percentage of contract volume or a schedule based on the license class. Confirm the exact amount and obligee with the state board before applying.
Online issue
State contractor bond requirements vary from state to state. Many are instant issue, and the vast majority are instant issue with acceptable credit up to $100,000. If the state uses a specialized bond form or a higher amount, the application may require underwriting review.
Term
Most state contractor bonds are written for a one-year term and renewed with the license. Some states require a bond that runs for the full license period, and a few require a continuous bond with no fixed expiration. The state board’s instructions control the required term.

Who needs a state Contractor License Bond?

  • General contractors, specialty contractors, and home improvement contractors applying for a state contractor license.
  • Contractors adding a new state license or renewing a license that requires a surety bond.
  • Businesses whose state licensing board requires a bond before it will issue or reactivate a license.

Why is a state Contractor License Bond required?

State licensing boards use contractor bonds to enforce licensing laws and to give consumers a recovery path when a licensed contractor violates the law or fails to complete a covered obligation. The bond is required as a condition of licensure, not as a substitute for insurance.

Because contractor licensing is state-specific, the bond amount, obligee, form, and term can differ significantly from one state to the next. Some states require a fixed bond amount, while others set the amount by license category or contract volume.

How much bond do I need?

Each state licensing board sets its own bond amount. Fixed amounts commonly range from $5,000 to $100,000 or more, and some states use a percentage of contract volume or a schedule based on the license class. Confirm the exact amount and obligee with the state board before applying.

State contractor bond requirements vary from state to state. Many are instant issue, and the vast majority are instant issue with acceptable credit up to $100,000. If the state uses a specialized bond form or a higher amount, the application may require underwriting review.

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 state Contractor License Bond cost?

Premium depends on the state, bond amount, license class, term, and the applicant’s credit. A fixed $10,000 to $25,000 state contractor bond is usually inexpensive relative to the bond amount. Apply online for the current premium and to confirm whether the bond can be issued immediately.

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

State Contractor License Bond term and renewal

Most state contractor bonds are written for a one-year term and renewed with the license. Some states require a bond that runs for the full license period, and a few require a continuous bond with no fixed expiration. The state board’s instructions control the required term.

Good to know

  • Some states require the bond to be filed directly with the state, while others require the contractor to keep the bond and provide proof. Check the licensing board’s instructions before submitting the application.
  • A state contractor bond does not replace a local license and permit bond. If you work in multiple municipalities, you may need both a state bond and one or more local bonds.

State Contractor License Bond questions

A state contractor license bond is a surety bond required by a state licensing board before a contractor can be licensed to perform work in that state. The bond gives the state and the public a way to recover certain losses caused by a licensed contractor’s failure to follow licensing laws.

General contractors, specialty contractors, and home improvement contractors applying for a state contractor license. Contractors adding a new state license or renewing a license that requires a surety bond. Businesses whose state licensing board requires a bond before it will issue or reactivate a license.

Premium depends on the state, bond amount, license class, term, and the applicant’s credit. A fixed $10,000 to $25,000 state contractor bond is usually inexpensive relative to the bond amount. Apply online for the current premium and to confirm whether the bond can be issued immediately.

Each state licensing board sets its own bond amount. Fixed amounts commonly range from $5,000 to $100,000 or more, and some states use a percentage of contract volume or a schedule based on the license class. Confirm the exact amount and obligee with the state board before applying. State contractor bond requirements vary from state to state. Many are instant issue, and the vast majority are instant issue with acceptable credit up to $100,000. If the state uses a specialized bond form or a higher amount, the application may require underwriting review.

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.

Many applicants can still be approved with less-than-perfect credit, but the premium may be higher or the application may need underwriting review. Instant issue is generally available with acceptable credit up to $100,000. Apply online and the surety will show the available options.

No. Bond requirements vary by state and by license type. Some states require a bond for general contractors, some require one only for specialty or home improvement contractors, and some do not require a surety bond at all. The state licensing board’s application instructions are the controlling source.

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.