Overview of Connecticut Contractor License Bond Requirements

A number of jurisdictions across the state of Connecticut require applicants for a contractor license or permit to obtain a contractor license bond. Bonds are required of different types of contractors - right of way, sidewalk, sewer, drain, excavation, and other types of contractors.

Cities and counties that require a license bond include the following: Bristol, Cromwell, East Hartford, East Windsor, Farmington, Fairfield, Metropolitan District, New Britain, New Haven, Plymouth, Rocky Hill, Seymour, Trumbull, and others.

Bond amounts in most of these places vary between $5,000 and $10,000 though there are exceptions. The exact amount is determined on a local level by the licensing authority.

The state of Connecticut does not require contractors to obtain a surety bond on a state level, such as when applying for a home improvement or major contractor license from the Department of Consumer Protection.

Why do contractors require a bond?

All bonds required of contractors in Connecticut serve the purpose of functioning as a guarantee that contractors will comply with state and local rules and regulations. In other words, the surety that issues the contractor license bond vouches for the contractor.

If a contractor violates the law and causes losses or damages to any person or the public at large, the bond functions as protection for them. It guarantees that the surety will extend compensation to the claimants for up to the full penal sum of the bond.

If this is your first time applying for a bond, you probably want to know more. See our detailed ‘What is a surety bond' guide for a detailed overview!

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See the sections below to learn about how the cost of your bond is determined, how to avoid bond claims, and how to apply for your bond.

To instead speak to one of our bond experts in person, call us at (866)-450-3412 anytime!

How Much Does it Cost to Get a Contractor License Bond in Connecticut?

Your bond premium is equal to a percentage of the full amount of your bond. Bond amounts for contractors in Connecticut vary from one bond to the next. If you are not sure of the amount of your bond is, contact the licensing bureau requesting the bond.

How high or low your bond premium is will depend on a number of financial factors taken into consideration by sureties.

What determines your bond rate

The cost of your bond is largely determined by your personal credit score - this is the primary factor considered by sureties. Applicants who have a high credit score are typically offered so-called standard market rates on their bonds. These rates vary between 1% and 4% of the total amount of the bond.

Apart from the credit score, sureties sometimes also consider factors such as:

  • Personal and business financial statements
  • Applicant fixed and liquid assets
  • Industry experience

If you'd like to get an estimate of the cost of your bond, try our bond calculator below!

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Can I get bonded if I have low credit?

Applicants with low credit scores can also get bonded. Rates for these applicants are higher than standard market rates because sureties consider it a higher risk to issue bonds against low credit. By improving your credit score, you can get increasingly better rates over time.

Do you have a low credit score but want to apply for a bond? See our Bad Credit Program page for a more detailed explanation.

How Do Bond Claims Occur?

Surety bonds are agreements that hold the bonded party accountable for complying with various conditions. The conditions of every bond vary depending on the type of responsibilities and obligations that the bonded party has.

For contractors in Connecticut, surety bonds usually require them to comply with state and local laws, and to perform work in a faithful and professional manner. The bonds usually specify that they are for the benefit of any person or the public at large who is injured or suffers damages as a result of a contractor's performance or omission on a project.

In other words, such actions are equivalent to a breach of the surety bond agreement and can give rise to a bond claim. When this happens, a claim can be made against the bond to request compensation. While compensation may initially be extended by the surety instead of the contractor, ultimately it is the latter's responsibility to cover any claim brought against the bond.

For this reason, it is much safer and costs less money and time, to simply comply with the bond agreement and avoid giving rise to claims.

Apply For Your Bond Today!

Ready to get bonded? Complete our simple bond application form, and we'll contact you shortly with a free quote on your bond.

Not ready to apply? Then simply get a free no-obligations quote, so you can see our low prices!

Do you have any questions about a particular Connecticut contractor license bond? Call us at (866)-450-3412 to speak to one of our experts!


About the author:
Todd Bryant
Todd Bryant is a graduate of Germantown Academy and the University of Pittsburgh College of Business Administration Honors College. He has been President of Bryant Surety Bonds, Inc., an A+ rated Business with the Better Business Bureau, since 2007. Licensed as a producer with the Department of Insurance, he has been published in the National Association of Surety Bond Producers newsletter and on numerous authoritative publications such as The Washington Post, Entrepreneur.com, Azcentral.com and many more.