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Contractor license bond
Published 2026-06-12 · by Brokly
In plain terms: A surety bond a state or local licensing board requires before it issues a contractor license — a guarantee to the board that you'll follow its rules.
Why it matters to you
Without the bond there's often no license, and without the license there's no legal work. The bond pays customers or the state if you break licensing rules — and the surety then collects from you, so it's a guarantee you fund, not coverage you enjoy.
Where you’ll see it
Amounts and rules vary by state and trade — the state pages here quote each rule from the licensing board's own text. Some states require none at all.
Related terms
Definitions describe how policies are typically structured — exact terms live in the policy. Not legal or compliance advice.