What is a Washington contractor license bond?
Individuals and businesses acting as general or specialty contractors in Washington must obtain a contractor license bond. The bond amount is $12,000 for general contractors and $6,000 for specialty contractors. The Washington Department of Labor and Industries (DOLI) regulates these bonds. Some municipalities also have separate license and bonding requirements, including Seattle, Redmond, and Lakehaven. You may contact your local licensing authority to ensure you meet all necessary regulations.
How does a contractor license bond work?
The contractor license bond guarantees that the public receives compensation for damages if you, as the contractor, fail to comply with contractor registration law. If you’re bonded and don’t fulfill your obligations, someone may file a claim against your bond. The bond amount represents the maximum liability, meaning that you cannot be held liable for more than $12,000 as a general contractor or $6,000 as a specialty contractor. Learn more about how contractor license bonds work in our complete guide.Get Your Washington Contractor License Bond:
Washington Contractor License Bond Costs
You will pay a small percentage of the bond amount to obtain your contractor license bond. This is known as the bond premium. In Washington, your personal credit score is the main factor underwriters consider when setting your bond premium. Your surety may also consider your business finances, liquid and fixed assets, and industry experience. You may pay as little as 1% of the bond amount for your premium if you have excellent credit. The premium could be higher if your credit score is poor, sometimes up to 5%.
Frequently Asked Questions
How do I obtain my Washington contractor license?
Follow these steps to apply for your contractor’s license in WA:
- Register your business with the Washington Secretary of State.
- Complete an online Business License Application.
- Obtain your Employer ID number.
- Fill out a Contractor Registration Application and get it notarized.
- Provide original proof of a surety bond or liability insurance.
- Submit your application and all relevant documents to the Labor and Industries Headquarters.
Can I still get bonded if my credit is bad?
You can obtain a license bond with poor credit in many cases. However, you may pay a higher premium rate, given the increased risk.
Get Your Contractor License Bond in Washington
ZipBonds offers the fastest and most secure option for getting bonded. Our all-digital platform is intuitive and straightforward. Apply online, email support@zipbonds.com or call 888.435.4191 to speak with an agent directly.
About ZipBonds.com
Founders Ryan Swalve and Zach Mefferd formed the vision for ZipBonds.com when they realized how overly complicated it was to help clients place surety. The frustration of being unable to incorporate the technology they’d used in other insurance-focused projects left them thinking “there has to be a better way.”
Fast forward a couple of years, and that better way is the impetus of everything we do at ZipBonds. We constantly look for innovative ways to improve the bonding process for our clients and agents. Our team comprises individuals who understand all angles of surety – for companies, agencies, and individuals. Incorporating everyone’s point of view to improve the process while simultaneously integrating cutting-edge technology is what sets our business apart.