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Electrical Contractor Bonds

Electrical contractors do essential work. No building construction is complete without it. But the risks of injury, destruction, and even death due to shoddy electrical workmanship are enormous. So, many states require electrical contractor bonds as part of their licensing process. Because these surety bonds are necessary to become licensed, they are also called license bonds.

What is an Electrical Contractor Bond?

An electrical contractor bond is a type of surety bond that guarantees the bonded contractor will follow all applicable laws and regulations when completing jobs. The bond creates both a financial incentive and an enforcement mechanism to guarantee all work is done competently and up to all codes.

How Does an Electrical Contractor Bond Work?

Like any surety bond, an electrical contractor bond is a legal agreement entered into by three essential parties:

• Principal: The bond principal is the individual or business that is bound by the electrician bond.
• Obligee: The bond obligee is the government agency or business that requires the bond.
• Surety: The bond surety is the insurance company that underwrites the bond.

If an electrician or electrical contractor leaves a job uncompleted, or violates laws, regulations, or codes in completing their work, the injured party can file a claim against the bond. The surety company investigates all claims. If they find the claim is valid, the surety pays the damages up to the bond's full value. They will dismiss any claim that has no merit. This ensures the public and the state are well-protected.

The principal is financially responsible for all valid claims. They must reimburse the surety in full for all claims paid, as well as all applicable penalties and fees.

Who Needs an Electrical Contractor Surety Bond?

Any electrician or electrical contractor working in a state that requires an electrical contractor surety bond must obtain one before they can be licensed. Some states require surety bonds specifically for electrical contractors. Others cover electricians along with other contractors under the same contractor license bond. It is imperative that you learn and abide by all electrical contractor bond requirements. The following states require specific electrician bonds:

• Arizona
• Illinois
• Minnesota
• Missouri
• New Jersey
• Ohio
• Texas
• Virginia
• Washington

If you're unsure whether you need a bond, the surety experts at Viking Bond Service will guide you to the resources that will answer this for you.

What is the Electrical Contractor Bond Cost?

In most cases, the cost of a surety bond, like an electrician bond, depends on the bond value and the principal's credit rating. The bond obligee determines the bond amount you must hold to work in the state or on a specific project. The typical bond value for electricians and electrical contractors ranges from $4,000 to $130,000. However, the electrical contractor bond cost is just a tiny fraction of the bond value, 1-5%. Those with problematic credit scores pay more than those with exemplary credit.

How to Get an Electrical Contractor Bond?

Obtaining a surety bond is quick and easy with Viking Bond Service. When you complete our online bond application, we'll send you a competitive electrician bond quote ASAP. Or, you're welcome to contact us online or call us at 1-888-2-SURETY (1-888-278-7389). We're happy to answer your questions and help you get bonded and licensed.