Please note that the following information is related to contractor’s license bonds. If you are a contractor seeking information on obtaining contract surety bid and performance bonds, please visit our contract bond page.
What is a South Carolina contractor’s license bond?
In South Carolina, not every contractor needs to obtain a surety bond. Although several cities in the state mandate that licensed contractors should post a surety bond. These are required as additional security for the city and the people who work with the contractor. Cities in South Carolina requires contractor’s license bonds for certain contractors to be held prior to undertaking construction services. Contractor’s licenses bonds generally insure that the contractor will comply with all codes and laws covered by the bond. South Carolina, or another local agency, will be named as the obligee on the bond. A contractor’s license bond must be obtained from an insurance company licensed to write surety bonds in South Carolina.
Obtaining Contractor’s License Bonds for My Trade.
Contractor’s license bonds may be required in South Carolina on a town or municipal level. Since Colonial is a direct and digital insurance company, you can easily obtain a bond customized to your location’s requirements. Below are a few examples of state-wide requirements by trade.
Residential Builder requires a license bond in the amount of $15.000
Licensed Specialty Contractor requires a license bond in the amount of $10,000
HVAC Contractor requires a license bond in the amount of $10,000
Plumber Contractor requires a license bond in the amount of $10,000
Electrician Contractor requires a license bond in the amount of $10,000
Registered Residential Specialty Contractor requires a license bond in the amount of $5,000
Colonial issues these examples of contractor’s license bonds, as well as all other types of contractor’s license bonds required by South Carolina counties, municipalities and towns.
What is the process to obtain the bond?
Colonial offers one of the fastest ways to obtain a contractor’s license bond. We are the insurance company — which means no agent, no broker, and no middleman. There is no turnaround time to obtain your bond. The steps are simple- get a free quote online, fill out your information, answer our underwriting questions, and enter your payment method. Your bond will be available in a PDF or original form, and always accessible to you online. It’s that simple!
What Do Contractor’s License Bonds Cost?
Contractor’s license bonds are reasonably priced and easy to obtain — so that you can run your business. You may notice that with other insurance agents and middlemen companies, your premium rate will fluctuate and include additional hidden fees and costs. Not at Colonial. We offer a flat rate for each contractor’s license bond.
Does it matter where I get my bond?
It is important to understand how surety bonds work, and who is the insurance company issuing your bonds. It is easy to run your business when you deal direct with a quality insurance company licensed in South Carolina to write surety bonds. Colonial is an A (Excellent) rated insurance company by A.M. Best, that has been incorporated since 1930. We are Treasury listed, and licensed and admitted in all U.S. states and territories.