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South Carolina
Contractors License Bond

Bond for South Carolina contractors or residential builders issued by the South Carolina Department of Labor, Licensing and Regulation.

South Carolina Contractors License Bond

$5,000 Residential Builder Bond

In South Carolina, residential specialty contractors must either have a license bond or register with RBC. 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.

South Carolina Contractor’s License Bond

$10,000 Residential Contractor Bond

Licensed specialty contractors in South Carolina, such as HVAC contractors, plumbers, and electricians, need a $10,000 bond.

General Contractor License Bonds

Oversight of a construction site, management, and coordination with vendors.

South Carolina Contractor or Residential Builder Bond

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. 

Mechanical Contractor License Bonds

HVAC, Refrigeration, Plumbers and Electrician Bonds

South Carolina Contractors License Bond

Effective May 2018, the Contractor Licensing Board will accept a South Carolina 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.

South Carolina Contractor or Residential Builder Bond

What is a South Carolina Contractors License Bond?

A South Carolina Contractor’s License Bond is a type of surety bond required by the South Carolina Department of Labor, Licensing and Regulation (LLR) for individuals or businesses seeking to obtain or renew a contractor’s license in the state of South Carolina. This bond is a financial guarantee. It protects consumers and the state. It is in place if the licensed contractor fails to fulfill their obligations. These obligations include finishing a construction project and following state rules.



Here’s how it typically works:

  1. Requirement: When getting a contractor’s license in South Carolina, you might need a surety bond as part of the process. The specific bond amount required can vary depending on the type of license and the scope of work.
  2. Surety Bond Provider: To get a South Carolina Contractor’s License Bond, you must work with a surety bond provider or insurance company. The surety company issues the bond. As the contractor, you must pay a premium for the bond. The premium is typically a percentage of the bond amount and depends on factors such as your credit history and the type of bond.
  3. Bond Coverage: The bond protects consumers and the state if the contractor fails to meet their obligations. If the contractor fails to finish the project as agreed or follows state rules, you can claim the bond.
  4. Claims Process: The surety company will investigate a filed claim to check its validity. If the claim is valid, the surety will provide financial compensation to the harmed party. However, we will limit the amount given to the specific amount stated in the bond.
  5. Contractor: The Contractor must repay the surety company for any claim paid out on the bond. This means the bond is not insurance but rather a financial guarantee that ensures the contractor’s financial responsibility.

Consumers and the state require a South Carolina Contractor’s License Bond to protect against financial losses. This bond is crucial as it protects against damages caused by licensed contractors or their failure to finish a job. It helps ensure that contractors operate ethically and professionally within the bounds of the law and their contractual agreements. Contractors must know the bonding rules from South Carolina LLR and work with a trustworthy bond provider to meet them. issues the South Carolina Contractor License Bond as an easy select, pay, and download so you can have your bond in about 5 minutes!

Palmetto Surety Corporation is the top seller of South Carolina Contractors License Bond

Palmetto Surety Corporation, founded in 2003 and located in Charleston, SC, offers various Surety Bonds at all levels. Palmetto Surety uses advanced technology to approve and underwrite most surety bond applications quickly in under 24 hours.

Buy a South Carolina Contractor Bond

As a South Carolina Contractor, you must protect your customers when you're a contractor. South Carolina Contractor license bonds guarantee ethical business practices and compliance with building codes or other applicable rules/regulations established by local governments. Local authorities require Contractor Bonds to ensure high standards and protect consumers.

The Basics of South Carolina Contractor License Bond

The law requires a bond when a contractor performs work valued at $10,000 or more. It protects the public and subcontractors who do business with the contractor. If the contractor fails to pay his workers, the bond will cover any losses incurred by the subcontractors.

Types of South Carolina Contractor License Bond Coverage

Two types of coverage are available through a contractor bond: performance and payment. Performance bonds guarantee that the contractor will perform the project according to contract specifications. Payment bonds ensure that the contractor pays its employees and subcontracted vendors.

How Much Does a South Carolina Contractor License Bond Cost?

  1. South Carolina Small Contractor Bond Cost - $125
  2. South Carolina Residential Specialty Contractor Bond Cost - $200

How Much Does a South Carolina General Contractor Bond Cost?

South Carolina General Contractor Bonds range from $200 to $4,800

How Much Does a South Carolina Mechanical Bond Cost?

South Carolina Mechanical Contractor Bonds range from $200 to $4,800

How Can I Learn More About South Carolina Contractor Surety Bonds?

Don't hesitate to contact us today for more information about your options. Our customer service representatives will be happy to answer any questions.

South Carolina Contractor License Bond FAQ

Most frequently asked questions and answers about buying a South Carolina Contractor License Bond online

Contractors in South Carolina must comply with local laws and regulations before conducting business in the state. South Carolina Contractor license bonds ensure ethical business practices and compliance with state rules for Contractors. They also guarantee adherence to building codes and regulations.

South Carolina requires a bond from those who want to be licensed as contractors. The cost of the Contractor License Bond depends on what type you need (South Carolina general and mechanical Bond). Most applicants will have their general and mechanical contractor license approved at 1-3% percent of its face value (i.e. $200 for a $20,000 bond).

The license bond for a general contractor in South Carolina is a surety bond that protects homeowners and other clients from financial losses if the contractor fails to complete a project on time, within budget, or according to specifications. The bond also protects against other damages, such as breach of contract and fraud.

To get a South Carolina contractor license bond, you must contact a surety company. You can find a list of surety companies licensed to do business in South Carolina on the website of the South Carolina Department of Insurance.

The surety company will review your financial history and credit score to determine your eligibility for a bond. If you are approved, you will be required to pay a premium to the surety company. The amount of the premium will vary depending on your credit score, financial history, and the amount of the bond.

The amount of the bond required will depend on the type of contractor license you are applying for. For general contractors, the bond amounts are as follows:

  • Group 1: $20,000
  • Group 2: $60,000
  • Group 3: $150,000
  • Group 4: $250,000
  • Group 5: $350,000

Once you have been approved for a bond, the surety company will issue you a bond certificate. You must submit the bond certificate to the South Carolina Contractor’s Licensing Board (CLB) with your license application.

Here are some additional tips for getting a South Carolina contractor license bond:

  • Compare quotes from multiple surety companies before you choose one.
  • Be prepared to provide documentation of your experience and financial history.
  • If you have any questions or concerns, contact the surety company or the CLB for assistance.

Once you have obtained a contractor license bond, you will be required to renew it annually. You must also maintain compliance with all applicable laws and regulations governing contractors in South Carolina.