Surety Bonds
What Does It Mean to Be Bonded as a Contractor?
Being bonded means a surety company has issued a financial guarantee on your behalf — vouching for your performance, licensing compliance, or payment obligations.
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What does it mean when a contractor is bonded?
When a contractor says they’re ‘bonded,’ they typically mean they have a surety bond — most commonly a contractor’s license bond. This bond is required by most state licensing boards and protects consumers and the licensing board against contractor misconduct or failure to complete work.
Being bonded is different from being insured. Insurance protects you against losses. A surety bond protects the party requiring it — the licensing board, project owner, or public — against your failure to perform.
Most contractors need to be both bonded and insured to operate legally and win contracts. The two work together: the bond satisfies licensing and contract requirements; insurance covers liability and workers comp obligations.
Need a surety bond fast?
Trade Safe helps contractors get bonded same-day in most cases. We work with multiple surety markets to find the best rate for your situation.