Ohio Contractors License Bond
Your path to becoming a licensed contractor in Ohio may include getting an Ohio contractor's license bond. There is not a statewide surety bond requirement. However, many counties and cities across Ohio require different kinds of contractors – electrical, plumbing, general – to have a surety bond with a minimum amount of coverage. This page covers everything you should know about getting a bond for a contractor's license in Ohio.
How Does a Contractors License Bond Work in Ohio?
All surety bond types, this one included, hold one party accountable for misconduct that causes damages to another party. Contractor license bonds make a contractor liable for illegal or unethical behavior. Clients who hire an unscrupulous contractor may file a claim against the surety bond for compensation equal to the financial damage the contractor caused.
Claimants will receive an automatic settlement from the surety bond company provided the claim holds up under investigation. Even though the surety guarantees a settlement, the contractor has the actual financial liability. The contractor must always repay the surety the amount of any settlement plus interest and fees. Failure to repay results in the debt entering collections.
Why Are Contractors Required to Get Bonded in Ohio?
Surety bond requirements in Ohio and elsewhere exist to help regulate the local contracting industry, promote lawful, upstanding practices, and streamline justice for any victims. Since bonds hold the contractor accountable for damages, they incentivize the contractor to follow the law. And since bonds guarantee a settlement for victims, they make it simpler to recover from the work of a bad contractor.
Surety bonds requirements have the added benefit of making contractors appear more trustworthy because the bond means they are willing to be held accountable for any misconduct. Surety bonds may be a requirement in parts of Ohio, but bonds are also an asset for any contractor who has one.
Ohio Contractor's License Bond Requirements
The requirements vary depending on the county and the type of contractor. In Cleveland, for example, general contractors need a $25,000 bond, but they only need a $10,000 bond in Cincinnati. Contact Viking Bond Service for help making sense of surety bond requirements.
How to Get an Ohio Contractor License Bond
The process to get any contractor license bond in Ohio works as follows:
- Seek out a trusted surety agency for help finding bond offers.
- Submit a standard bond application with basic personal and financial information.
- Comply with a credit check.
- Provide any additional information or documentation the surety requests.
- Receive a quote for the cost of the surety bond premium.
- Pay the premium to activate coverage, usually for a 12-month period.
- Give a proof-of-bond-coverage document to the relevant licensing board.
The Cost of a Contractor License Bond in Ohio
The surety bond cost will be a small percentage of the bond's total value. For example, the $25,000 general contractor bond in Cleveland will likely cost less than $500. The exact cost reflects the bond seeker's credit standing. Strong credit leads to lower costs, but costs will climb as credit standing declines, and some bond providers will reject people because of credit.
Don't let credit stand in the way of getting a bond – take advantage of the bad credit surety bond program from Viking Bond Service.
Do You Need to Renew a Contractor License Bond in Ohio?
Lapses in bond coverage put a contractor's license status in question and could lead to fines and penalties. Therefore, it's vital to keep the required surety bond active and in good standing at all times, including renewing it annually (bond coverage expires after 12 months).
Upon renewal, the surety will perform another credit check and revise the bond price up or down depending on credit changes. One way to manage bond costs long term is by steadily improving credit.
Viking Bond Service – Serving Ohio Contractors
If you need an Ohio contractor license bond in any location for any amount, rely on Viking Bond Service. We help contractors all across Ohio meet their bond requirements, for license bonds and contract bonds, too. All your bonding needs are covered with us as your bond partner.
Request a quote at any time through the simple online form. We provide quotes within 24 hours. Our team is also on standby to answer your questions. Contact us in writing or call 1-888-2-SURETY (1-888-278-7389).
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