What is a Wisconsin Contractor License Bond?
Many different types of contractors require a license to work legally in the state of Wisconsin, from specialists in plumbing and heating to dwelling contractors. Although the licensing process varies slightly from one county or city to the next, it is common to need a Wisconsin contractor license bond. This type of surety bond is meant to protect customers you interact with against business practices or construction work that may lead to them suffering financial losses.
A Wisconsin contractor license bond involves three specific parties. You are the principal, or the one needing to post the bond. The obligee is the county or city authority requiring a bond be obtained, and the surety is the company providing the bond on your behalf. If a successful claim is made against your Wisconsin contractor license bond, this can negatively impact your business. Claims must be repaid to the surety, and renewing a bond may be a challenge if you have a lengthy history of claims.
What Does a Wisconsin Contractor License Bond Cost?
The bond amount you need to post depends on where you plan to do business, but it typically ranges from $1,000 to $25,000. Fortunately, you are not required to pay the full amount of your bond requirement. A Wisconsin contractor license bond is priced as a small percent of the total, often between 1 and 5%.
Licensed contractors in Wisconsin pay a lower bond premium when they have a high credit score and a minimal history of bond claims. The surety company providing the bond wants to feel confident that you are able to repay any successful claims in the future, so bad credit will lead to a higher bond cost. You can still secure your Wisconsin contractor license bond if credit is an issue, but the price you pay may be closer to 10% of the bond amount.
How Do I Get a Wisconsin Contractor License Bond?
If you are ready to get your Wisconsin contractor license bond, you can submit a quick form online to begin the process.