South Carolina Contractor License Bonds
Instant Approvals | Competitive Rates | Trusted Service Since 2003
Get Your South Carolina Contractor License Bond Online Today!
- Instant Approvals
- Immediate PDF Download of your Bond
- Competitive Rates
- Expert Support
- Deal direct with Insurance Carrier, not an Agent.
What is a South Carolina Contractor License Bond?
A South Carolina Contractor License Bond is a type of surety bond required by the South Carolina Department of Labor, Licensing and Regulation (LLR) for contractors seeking to obtain or renew their license. This bond acts as a financial guarantee that you will adhere to all state regulations and contractual obligations, ensuring ethical business practices and protecting consumers from financial loss.
Why Do You Need a Contractor License Bond?
- Legal Requirement: It’s mandatory for licensing in South Carolina.
- Consumer Protection: Safeguards clients against incomplete or substandard work.
- Professional Credibility: Demonstrates your commitment to industry standards.
Types of South Carolina Contractor License Bonds
Residential Builder Bond
Residential specialty contractors must either have a license bond or register with the Residential Builders Commission (RBC), depending on the type of work they’ll be performing. This is per the state’s Contractor Code of Laws. The government created rules for fair business practices to protect finances, requiring a $5,000 surety bond. This $5,000 surety bond helps to protect consumers and ensure that contractors comply with state regulations.
Residential Specialty Contractor Bond
Licensed specialty contractors such as HVAC contractors, plumbers, and electricians, need a $10,000 bond. A contractor’s bond is essential for protecting consumers and ensuring contractors meet their legal liability.
General Contractor License Bonds
Required for contractors working on projects valued at $10,000 or more.
Instead of providing a financial statement showing a minimum net worth for a licensed group as required by Section 40-11-260, a South Carolina General Contractor applicant may provide a surety bond of two times the required net worth for the applicant’s license group with his initial or renewal application.
General contractor bonds are required for overseeing construction sites and ensuring compliance with vendor coordination and regulations.
| License Group | Bond Amount | Action |
|---|---|---|
| Group 1 | $20,000 | Buy a $20,000 Bond |
| Group 2 | $60,000 | Buy a $60,000 Bond |
| Group 3 | $150,000 | Buy a $150,000 Bond |
| Group 4 | $250,000 | Buy a $250,000 Bond |
| Group 5 | $350,000 | Buy a $350,000 Bond |
Mechanical Contractor License Bonds
Required for mechanical contractors, such as HVAC, plumbing, and electrical services.
Effective May 2018, the Contractor Licensing Board will accept a Mechanical Contractor surety bond in place of qualification by the previous minimum net worth standards. Starting from the 2018-2019 license renewal, the Board can now accept a surety bond instead of a financial statement.
This applies to both renewals and new applications. An applicant can give a surety bond worth twice the net worth requirement for the Group Level they are applying for.
| Bond Group | Bond Amount | Action |
|---|---|---|
| Group 1 | $7,000 | Buy a $7,000 Bond |
| Group 2 | $15,000 | Buy a $15,000 Bond |
| Group 3 | $30,000 | Buy a $30,000 Bond |
| Group 4 | $60,000 | Buy a $60,000 Bond |
| Group 5 | $300,000 | Buy a $300,000 Bond |
How Much Does a Contractor License Bond Cost?
The cost of your bond (the premium) is a percentage of the total bond amount, typically ranging from 1% to 5%, based on your credit score and financial history.
- Example: For a $20,000 bond, premiums range from $200 to $1,000 annually.
How to Get Your Contractor License Bond
Apply Online
- Fill out our simple online application with your basic information.
Instant Approval
- Most applicants receive immediate approval thanks to our streamlined process.
Download Your Bond
- Access your bond certificate instantly upon payment and approval.
Submit to LLR
- Provide the bond certificate to the South Carolina LLR with your license application.
Why Choose Palmetto Surety Corporation?
Experience
- Serving contractors since 2003, we have extensive industry knowledge.
Fast Approvals
- Our advanced technology enables quick underwriting, often within minutes.
Competitive Rates
- We offer some of the most affordable premiums in the market.
Customer Support
- Our dedicated team is ready to assist you at every step.
Get Your South Carolina Contractor License Bond Fast & Easy
Frequently Asked Questions
- A financial guarantee ensuring contractors comply with state laws and contractual obligations, protecting consumers from financial loss.
Who Needs to Obtain This Bond?
- Any contractor in South Carolina engaging in projects that require licensing under state regulations.
How is the Bond Amount Determined?
- The bond amount is set by the South Carolina LLR based on your contractor classification and the scope of work.
Can I Get a Bond with Bad Credit?
- Yes! We offer bonding solutions for all credit types. Premiums may vary based on credit history.
How Long is the Bond Valid?
- Contractor License Bonds are typically valid for one year and need to be renewed annually.
Ready to Secure Your Contractor License Bond?
South Carolina Contractor License Bond as an easy select, pay, and download so you can have your bond in about 5 minutes!
