Electrical Contractor Bond

Your surety bond price is set on the basis of the bonding amount you are required to post during the licensing process. The relevant licensing authorities determine this amount, so before you start your bonding, make sure to check their exact requirements. Check the table below for some referential amounts.

On the basis of the bond amount, you need to pay a bond premium, which is a fraction of it. Usually, this means covering 1%-5% of the required bond.

How is your electrical contractor bond cost determined? When you apply for the bond, your surety has to consider your full financial profile. This includes your personal credit score, business financials, and liquidity and assets. You can expect a lower bond premium if your finances are solid, particularly your credit score.

Make sure to consult our surety bond cost page for a complete review of how the bond price is formulated.

Lance Surety Bonds runs its Bad Credit Surety Bonds program to help electricians with low credit scores, tax liens, bankruptcies, or civil judgements get bonded.

The typical bad credit bonding premiums are in the range of 5%-10%. The higher cost compensates for the increased bonding risk. With us, however, you’re always guaranteed a top bonding rate. We work with A-rated, T-listed surety companies, so we can shop around for the best bonding option for you

You can start your bonding today by applying online for a free electrical contractor bond quote. After submitting your complete paperwork, we’ll also deliver your exact bond quote.

Have more questions? Our How to Get Bonded page is an excellent resource on the bonding process.

For any further queries, just call us at (877) 514-5146 and our bonding specialists will be happy to help.

Unlike insurance, your bond functions as a safety net for authorities issuing your license and for your customers. That’s why it’s important to grasp how the bond claims process works.

If you don’t abide by applicable rules and your commitments under the bond, you can face a claim. Some examples of breaches include not following the statutes governing electrician’s activities in your state, or not executing your contractual commitments with customers.

Proven claims entitle affected parties to compensation, which can be up to the penal sum of the bond. Your surety will cover the costs at first, but you will have to repay it in full. This makes claims a serious financial burden, so it’s best to avoid them as much as possible.

Minnesota electrical contractor bond

All licensed electricians in Minnesota need to present an electrical contractor bond to the Minnesota Department of Labor and Industry. The bond amount is set at $25,000. Its purpose is to ensure compliance with Minnesota Statute 326B.33.

New Jersey electrical contractor bond

Electrical contractors in New Jersey need to get licensed with the New Jersey Division of Consumer Affairs’ Board of Examiners of Electrical Contractors. The required bond is $1,000 for a three-year term. The bond guarantees that electricians will comply with the New Jersey Electrical Contractors Licensing Act of 1962.

Arizona electrical contractor bond

Electricians in Arizona need a C11 type of license from the Arizona Registrar of Contractors. Depending on the gross volume of work per license, the bond requirement is between $2,500 and $50,000. The bond ensures compliance with Arizona Revised Statutes Title 32, Chapter 10.

Washington electrical contractors bond

Washington State electricians have to obtain a license from the Department of Labor and Industries. For that purpose, they have to post a $4,000 electrical contractor bond. It guarantees electricians will follow Chapter 296-46B of Washington State Statutes.

D.C. Master Electrician and Electrical Contractor Bonds

The bond amounts for electricians in Washington D.C. are determined by the Director of the D.C. Department of Consumer and Regulatory Affairs. They are based on the amount of work an electrical contractor does.

North Carolina electrical contractor bond

In North Carolina, electricians have to get licensed with the NC State Board of Examiners of Electrical Contractors. The bond amount is $50,000 for intermediate and $130,000 for unlimited classification. The purpose of the bond is to guarantee compliance with Section .0800 of the state’s regulations.