Hawaii Contractor License Bond
Before you can work as a contractor in some fields in Hawaii, you need to get a license. And before you get a contractor's license in Hawaii, you will need to get a surety bond – a process which we explain below.
How Does a Hawaii Contractor License Bond Work?
It holds a contractor financially liable if they violate relevant state laws and cause financial losses to clients as a result. When that happens, the client may file a claim against the surety bond for compensation. Contractors must pay for all valid claims. If they don't, however, the bond company guarantees a full settlement to the client. After that, the contractor must pay the bond company back the entire settlement amount or face legal action and loss of bond coverage.
Hawaii Contractor License Bond Requirements
Unlike most other states, Hawaii sets contractor license surety bond requirements on a case-by-case basis. They need to have at least $5,000 in coverage. However, they could also have higher coverage requirements as determined by the Contractors License Board. Contact that board before seeking out a bond to satisfy Hawaii state contractor license requirements.
How to Get a Hawaii Contractor License Bond
Once the coverage requirements are worked out, getting a Hawaii bond is fairly easy:
- Fill out a bond application
- Submit to a credit check
- Provide extra documentation (only when necessary)
The bond company uses the info to quote a cost for the surety bond that you will need to pay to activate coverage for the assigned term.
The Cost of a Hawaii Contractor License Bond
You will need to pay a small percentage of the coverage amount. The exact amount depends on your credit score and financial history, and bad credit leads to higher bond premiums. Fortunately, Viking Bond Service has a special program to help those with poor credit still get bonded.
Who Needs Hawaii Contractor License Bonds?
Anyone who plans to work as a licensed contractor and has been required to get a bond as part of the licensing process. You cannot get a license without first proving you have a bond. Working without a license is illegal and comes with strict penalties, including being barred from ever getting a license again.
Why Are Contractors Required to Get Bonded in Hawaii?
The reason you need a surety bond to get a contractor license in Hawaii is to hold contractors accountable for illegal behavior and, in the process, create a disincentive to do anything illegal. Surety bonds also help people recoup losses they have suffered because of unscrupulous contractors.
How Long Does a Hawaii Contractor License Bond Last?
Contractor license bond coverage lasts for 12 months. Contractor's licenses in Hawaii require you to have an active bond at all times, so the bond must be renewed annually. Renwal will involve a credit check followed by a premium adjustment to a higher or lower amount based on credit changes.
Get Hawaii Contractor License Bonds from Viking Bond Service
Don't wait to get the surety bond you require. Request a quote from Viking Bond Service – it costs nothing, comes with no strings attached, and gets you a number to consider in under 24 hours. To learn more about obtaining a Hawaii contractor license bond, contact us online or call 1-888-278-7389 (1-888-2-SURETY).
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