Kentucky Contractor License Bond

A Kentucky contractor license bond costs between $100 and $10,000. The bond amount requirements vary based on the trade and the contractor’s location. For example, an encroachment permit bond is required at the state level in the amount of $50,000. Henderson requires a contractor bond of $10,000.

As a trusted surety company that has been meeting Kentucky’s bond needs for more than a decade, we provide all types of contractor bonds at a premium price. Rather than paying the full bond amount, you will pay a premium rate of 1% to 10% of the required bond amount.

The premium rate for your new Kentucky surety bond is dependent on your professional credentials, financial assets and credit scores. We provide bonds to more than 99% of our applicants and offer bonds for most credit scores.

A surety bond premium rate of 1% to 3% applies for applicants with a 700 credit score or better. A rate of 3% to 5% is available for a 600 to 699 credit score. With a lower credit score, the applicant will receive a premium rate that falls between 5% and 10%. Check the table for a practical example of how your premium is calculated.

1. Determine the Surety Bond You Need

With numerous contractor bond requirements for different trades required at the state and local levels, the first step is to determine the requirements that apply to you. 

The Kentucky Transportation Cabinet is the authority on encroachment permit bonds. Resources for local bond requirements are available below. Our bond experts are available to answer your questions. We are committed to providing you with a simple, streamlined bond experience.

2. Apply for Your Bond

Through our online application you can conveniently apply for the bond type and amount needed. This is a brief application that asks for only essential information. Many of our customers in Kentucky are able to complete the form within a few minutes.

3. Get a Quote

Most of our surety bond applicants in Kentucky benefit from an instant quote after applying online. Some applications, however, are more complicated and require further review. For these situations, we provide a no-obligation quote in under 48 hours.

4. Buy Your Bond

To complete your purchase of a Kentucky contractor bond, make your premium payment online. After your payment is received, our efficient bond associates will quickly prepare your bond and send it to your inbox. A mailed copy of your contractor bond is also available, if requested.

If you have questions about the bond application, your quote or something else, we can help. Please contact us or call us at (877) 514-5146.

The bond requirements for contractors in Kentucky vary. Generally, the contractor must maintain the bond in order to continue doing business in the state or at the local level, as applicable.

All bonds must be purchased by a surety company authorized in the state. In addition, the appropriate obligee must be listed on the surety bond. The obligee varies by bond. For example, the Transportation Cabinet for the appropriate district is the obligee for an encroachment permit bond.

Contractors should be aware of the bond’s expiration date and should take steps to renew the bond as necessary. Some contractor bonds in Kentucky run continuously. The bond premium must be paid annually regardless of the expiration terms. We will be in touch with payment instructions each year.

Recently, Glen contacted us to buy a new bond for his contractor business. As a new contractor, he was not familiar with bonds. We answered his questions and guided him through his purchase. After receiving his bond via email, Glen submitted his contractor license application to work in Kentucky.

With our resources, we make it easy to learn how to get a contractor license. The licensing rules and documentation vary, but there are some similar requirements for many types of licenses in Kentucky. These include:

• Application
• Surety bond
• Proof of liability insurance
• Application fee
• Professional experience
• Pre-license training and proof of completion
• Business entity documentation for an LLC, corporation or assumed business name
• Workers' compensation insurance, if applicable

Review the specific documentation requirements and submission instructions for the type of Kentucky surety bond you need to avoid delays.