What Is a Mississippi Contractor License Bond?
Certain professionals in Mississippi must maintain a contractor license to do business throughout the state. A Mississippi contractor license bond is part of the license application requirements. This type of surety bond ensures that licensed contractors do business with customers and employees according to local laws.
When a customer or employee has a legitimate claim for losses against a contractor, payment is made from the surety company up to the limit of the bond. However, the contractor is responsible for payment of any claims.
How Does a Mississippi Contractor License Bond Work?
A Mississippi contractor license bond is a contract between three parties.
The obligee is the state or local licensing authority requiring the bond.
The principal is the contractor required to obtain a bond for the purpose of getting licensed.
The surety company provides the bond to the principal and takes care of any successful claims made against the bond. The principal must ultimately pay back the claims to the surety over time.
Obligee Details for Mississippi Contractor License Bonds
Mississippi contractor licensing requirements are managed by local jurisdictions—counties and cities throughout the state. When a contractor is required to have a license, a Mississippi contractor license bond may also be necessary. The local licensing authority acts as the obligee for the bond in these cases.
For some Mississippi contractors or those from out of state, a blanket Mississippi contractor license bond may be required. The blanket bond ensures tax payments are made in a timely fashion. The obligee for this bond is the Mississippi State Board of Contractors, with the following contact information:
Mississippi State Board of Contractors
2679 Crane Ridge Drive
Jackson, Mississippi 39216
Who Is Required to Get a Mississippi Contractor License Bond?
Local licensing agencies determine who must hold a contractor license and if a Mississippi contractor license bond is necessary. Some of the more common contractor licenses that require a surety bond include:
- Heating and air conditioning
- Residential contractors
- Commercial contractors
How Do I Get a Mississippi Contractor License Bond?
Licensed contractors can obtain a Mississippi contractor license bond by submitting a brief online application. Once the surety company evaluates your application details, you receive a quote for your bond and instructions on completing the bond process.
What Does a Mississippi Contractor License Bond Cost?
Like other surety bonds, a Mississippi contractor license bond is priced as a percentage of the total bond put in place. Depending on the location of your contractor business, a bond between $5,000 and $10,000 may be necessary.
Contractors from out of state may have to post a larger bond, but the cost of a Mississippi contractor license bond ranges from on1e to 10 percent of the bond total.
The price you pay for a contractor license bond in Mississippi depends on your personal credit score, past claims history, and business financial standing. Most importantly, your credit score dictates how much of a risk you may be to the surety company providing your bond.
Can I Get a Minnesota Contractor License Bond with Bad Credit?
You can get a contractor license bond with bad credit, but the lower your credit score, the higher your bond premium is likely to be. This is because you pose a higher risk to the surety company when you have bad credit.
Mississippi Contractor License Bond Renewal
Because Mississippi contractor licenses are handled by local licensing authorities, no set expiration date or renewal term exists across the board. When a license is up for renewal, so is the Mississippi contractor license bond.
Renewal information and instructions are sent from the surety company that issued your bond ahead of the deadline to renew.