What is an North Carolina Contractor License Bond?
Contractors working in North Carolina do not have a statewide licensing obligation to meet. However, specific cities and counties have licensing requirements for contractors that may include the need for a North Carolina contractor license bond. This type of surety bond provides some protection to customers interacting with licensed contractors.
If the contractor fails to comply with local laws and regulations or engages in fraudulent or illegal activities when working on a project, a customer can make a claim against the bond to receive compensation for damages.
A North Carolina contractor license bond is required for licensing in many counties and cities for HVAC, mechanical, refrigeration, electrical, and home improvement projects. You can check the licensing and bonding requirements through the local authority responsible for approving contractor licenses.
What Does a North Carolina Contractor License Bond Cost?
The bond amount you need as a licensed contractor varies depending on the type of work you perform and the location of that work. A North Carolina contractor license bond may be as low as $2,500 or as high as $130,000, but you are not responsible for paying the full amount. Instead, you are charged a bond premium which is calculated as a percentage of the bond, typically ranging from 1 to 10%.
When applying for a North Carolina contractor license bond, the surety company providing your bond will determine your bond premium after reviewing your personal credit score and business financial strength. You can still get bonded with a low credit score, but you will pay a higher premium for your North Carolina contractor license bond.
How Do I Get a North Carolina Contractor License Bond?
If you have determined the amount of bonding you need to work as a contractor in North Carolina, you can submit a brief online application to start the process. After the surety company evaluates the details of your application, you will receive a bond premium quote to put your North Carolina contractor license bond in place.