Who needs to obtain a Washington Contractor License Surety Bond?
The state of Washington requires anyone who wishes to conduct business as a contractor to register with the Washington State Department of Labor and Industries (L&I). To complete this registration, a Washington contractor license bond must be submitted to the L&I as a form of security. Bond amounts vary and are based on the type of registration the contractor is applying for:
- Electrical/Telecommunications License – $4,000 Bond
- Specialty Contractor License – $6,000 Bond
- General Contractor License – $12,000 Bond
How does a Washington Contractors License Surety Bond work?
Washington Contractor License Surety Bonds guarantee that the principal (contractor) complies with all rules and regulations of Chapter 18.27 RCW and Chapter 296-200A WAC that govern contractors, and ensures the principal completes the following:
- Pay all wages and benefits to any person furnishing labor to the principal
- Pay all amounts that become due as a result of the principal’s breach of contract, including negligent or improper work in the conduct of the contracting business
- Pay any person who furnishes labor or materials or who rents or supplies equipment to the principal
- Pay all taxes and contributions due to the state
If the principal does not comply with the terms of the bond, a claim can be filed with the surety company for relief. If the claim is valid, the surety will pay up to the penal sum of the bond to resolve the claim. The principal is then required to reimburse the surety for all monies paid out, including any attorney fees incurred.
What is the fine print of the bond?
Washington Contractor License Surety Bonds must be filed with the L&I within thirty days of the date it is signed and issued by the surety company. This bond renews on an annual basis with the surety company. The term for the bond with the state is continuous and remains in full effect until canceled by the surety. The surety may cancel the bond at any time by giving written notice to the Director of L&I. The cancellation or revocation of the bond, or withdrawal of the surety from the bond, suspends the registration issued to the contractor until a new bond or reinstatement has been filed and approved by the L&I. The aggregate liability of the surety under the bond for claims against the bond shall not exceed the penal sum of the bond in any event.
How do I get a Washington Contractors License Bond?
The first step is to complete our quick online application for your free bond quote. Submission takes only five minutes, and our underwriting staff will be in contact with you within a couple of hours with pricing.
After you receive approval, you must sign an indemnity agreement with the surety and provide payment for your bond premium. In most cases, we can issue bonds the same day we receive your signed documents and payment.
What do I need to register for a Washington Contractors License?
In addition to obtaining a Washington Contractor License Surety Bond, the following steps must be completed:
- Register your business with the Washington Secretary of State if you are going to operate as a Corporation, Limited Partnership (LP) or a Limited Liability Company (LLC)
- Get your Uniform Business Identifier (UBI) Number
- Get your IRS Employer ID Number if you plan to employ workers
- Submit proof of $250,000 general liability insurance
- Complete and notarize an application for contractor registration
Can I get a Washington Contractor License Surety Bond with bad credit?
Pacific Surety offers a wide range of approvals, regardless of credit, for Washington Contractor License Surety Bonds. Our strong surety relationships help get your price down as low as possible each year. There is no need to shop your rate – we do that for you! If you have any specific questions, feel free to contact our knowledgeable underwriting staff.
How much does a Washington Contractor License Bond cost?
Washington Contractor License Surety Bonds are subject to underwriting and the price you will pay depends on a review of your personal credit report. Pacific Surety is proud to offer rates starting at 1% of the bond penalty amount annually ($100 minimum premium) for well-qualified applicants. It typically takes just a few hours from quote to issuance of the bond, and we have the ability to beat any competitors pricing. If you have any specific questions, feel free to contact our knowledgeable underwriting staff.