Washington Contractor License Surety Bonds

Who needs a contractor surety bond in Washington State?

If you plan on working as a contractor in the state of Washington, you must be licensed and bonded with the state. Moreover, the type of license and surety bond the state requires depends on the type of work you perform.

Select the bond type you need to get free quotes.

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Electrical / Telecommunication Contractors

You must receive an electrical contractor license from the Washington State Department of Labor & Industries (L&I) before taking on electrical work. One of their licensing requirements is to purchase a bond in the amount of $4,000.

Farm Labor Contractors

WA L&I requires employers hiring contractors for farm labor to secure a license and bond. However, the necessary bond amount depends on the number of employees working for the contractor.

Fire Sprinkler System Contractors

The Washington State Patrol (WSP) issues licenses to businesses and individuals responsible for designing, installing, maintaining and testing fire sprinkler systems. They have five levels of licenses. Determine your bond amount by your licensing level.

General Contractors

All construction contractors must register with L&I in Washington State. As a general contractor, you can take on most types of construction work. Part of the state’s requirements for the general contractor license is to purchase a $12,000 surety bond.

Plumbing Contractors

Plumbers in the state of Washington must get their plumbing license from the WA L&I. Licensees can either purchase a surety bond or get an assigned savings account. Either option needs to be in the amount of $6,000.

Specialty Contractors

If you’re operating as specialty contractor, then you can only work jobs in your registered specialty. WA L&I requires you have a bond in the amount of $6,000.

City & County Bonds

Many Washington cities and counties require specific types of contractor bonds. Such as sewer contractors in Redmond ($5,000 bond amount) and Seattle ($30,000 bond amount). Or, the utility district sewer service contractors in the Lakehaven ($10,000 bond amount) utility district.

We recommend verifying the bond type and amount you require with your local licensing department. They will often provide a copy of the bond form to ensure you get the bond amount you need with your surety of choice. If you don’t see the bond type you need on our website, please contact us at [email protected] or call (866) 722-9239.

How does a continuous contractor surety bond work?

The state licensing departments enforce surety bond requirements to ensure you perform your duties as a licensed contractor ethically and honestly. Unlike a standard insurance policy, the bond provides coverage for your clients (or employees with a farm labor bond). If you fail to follow through with the agreed upon terms set by the licensing department, a claim can be made against your bond.

What makes these bonds continuous is the fact they remain in effect until they are cancelled by you or the surety company. Although the bond doesn’t have an expiration date, you still must pay the surety at renewal when your bond’s term ends. Which is usually between one to three years. If you don’t renew your bond terms, the surety can cancel your bond with the licensing department.

What happens if a claim made against my bond?

The surety company that issued your bond will conduct an investigation when a claim on your bond is made. When a surety deems a claim to be valid, they will payout to the claimant(s). However, the payout cannot exceed the amount of your bond. As the principal of the bond, you are responsible for paying the surety back and making them financially whole after a payout on a claim.

How much do the bonds cost?

Let’s start by clarifying the cost of the bond and the bond amount are not the same. Generally, you only need to pay a small percentage of the total bond amount in premium. The two big factors that come into play when determining the cost of your bond is the bond amount you require and your credit score. More risk is associated with your bond if the coverage amount is high and your credit score is low.

Applicants with a high credit score tend to pay 1%-3% of the bond amount they require. This often comes to around $100 for Washington State contractor license surety bonds. However, if your credit score is not so good, your range in quotes could fall between 5%-15% of the bond amount.

Am I eligible for a bond with bad credit?

Don’t let your credit score prevent you from applying for a bond. When we receive your application, we run a soft pull on your credit, so the credit check doesn’t adversely affect your score.

Due to our partnership with over thirty leading surety companies, we’re able to offer quotes to applicants with non-standard credit. Get your bond quotes today!

What are the steps to get a contractor license in Washington?

The state of Washington requires contractors complete the following tasks to receive a general or specialty contractor license.

Sole proprietors or partnerships must decide on a business name or register for a Uniform Business Identifier (UBI) number with the Department of Revenue.
Apply for a business license with the Secretary of state if your business is an LLC, LLP, LP or corporation.
Purchase general liability insurance in the form of $200,000 in public liability and $50,000 property damage, or $250,000 combined single limit.
Purchase a Washington Continuous Contractor Surety Bond. The bond amount depends on your license type.
- $12,000 General Contractor Bond
- $6,000 specialty Contractor Bond
Complete an Application for Contractor Registration with signatures notarized.
Pay the application fee of $117.90.

The process of acquiring other contractor license types in the state of Washington varies.

Contact the WA L&I by email at [email protected] or phone at 1-800-647-0982 if you have any questions about licensing.

Need help with your bond? Contact our surety experts at Surety Solutions, A Gallagher Company. Send us an email to [email protected] or call (866) 722-9239.

I need a bond for a construction project

When bidding or starting a large construction job for the state of Washington, you’ll need to purchase a contract surety bond. These types of bonds include Bid Bonds, Maintenance Bonds, Payment Bonds, Performance Bonds and Warranty Bonds. Due to how expensive construction projects, the state enforces these types of contract bonds to protect the tax payers money. Request a quote for a contract bond here.