Overview of Ohio Contractor Bond Requirements
Numerous cities and counties across the state of Ohio require contractors to obtain a contractors license bond. Unlike in other states, there is no statewide requirement for contractors to get licensed. Instead, cities and municipalities determine both which contractors must get licensed or registered, as well as the amount of the bond they need to obtain. Bond amounts for contractors in Ohio vary between $5,000, $10,000, $15,000, and $25,000.
These bonds are put in place to guarantee that a licensed or registered contractor will comply with local rules and provisions regarding the quality and nature of their work. They are required in order to provide protection to the city or municipality and public against contractors who violate such rules and cause harm and losses. For example, if a contractor works on a public project but violates the conditions of their contract, a claim against their bond may be filed.
When a claim against a bond is made, the surety backing the bond will typically extend compensation to claimants. Such compensation can be as high as the full amount of the bond, also known as its penal sum.
To see which cities and municipalities in Ohio require a bond, take a look at the table further below.
If you are new to bonds, and want to know more about them before you proceed, see our detailed ‘What is a surety bond’ guide to understand how bonds work, and why you need one!
Read on to find out more about how much getting bonded will cost, what a bond claim is, and how you can apply for a bond.
Would you rather speak to someone personally? Call us at 866.450.3412 anytime!
The Cost of Your Ohio Contractor Bond
The cost of your bond is a fraction of the full amount of your bond. It is determined by your surety when you apply for the bond. The surety initially considers your personal credit score. It may also request that you provide further information such as financial statements or bank statements to better determine your rate. Typically, for bonds with amounts up to $50,000 your credit score may be enough for the surety, and the higher your score, the lower you can expect your bond rate to be.
Applicants with a FICO score of 700 receive the best possible rates on their bonds. Such applicants can expect a rate between 1% and 2% on their Ohio contractor bond.
Try our bond calculator to get a quick estimate of your bond cost or see the table below for a cost range based on credit score. For a precise quote, see the section on getting bonded.
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Get a free exact quote Get another estimate| Ohio contractor bond | Surety bond amount | Above 700 | Between 650-699 | Between 600-649 | Below 599 |
|---|---|---|---|---|---|
| Required in: Warren County, Upper Arlington, Strongsville, Rossford, Reminderville, Portage County, Moreland Hills, Massillon, Gahanna, | $5,000 | $100 | $100-$150 | $100-$200 | $150-$250 |
| Required in: Fairfield County, Youngstown, Willougbhy, Wickliffe, Westlake, Warren, Walton Hills, University Heights, Twinsburg, Trumball County, Trotwood, Summit County, Streetsboro, Springfield, South Bloomfield, Rossford, Reynoldsburg, Ravenna, Niles, North Canton, Oakwood Village, Olmsted Township, Middleburg Heights, Massillon, Huron County, Hartville, East Cleveland, Bedford, Cleveland, Findlay, Aurora, Euclid, | $10,000 | $100-$200 | $150-$300 | $200-$400 | $300-$500 |
| Required in: Chillicothe, Eastlake, Grove City, Portsmouth, Willowick, | $15,000 | $150-$300 | $225-$450 | $300-$600 | $450-$750 |
| Required in: Brecksville, City of Solon, Cleveland, Columbus, Highland Hills, Maple Heights, Medina County, North Ridgeville, Painesville, Whitehall, | $25,000 | $250-$500 | $375-$750 | $500-$1,000 | $750-$1,250 |
Bad Credit Bond Program
You can still get bonded, even If your credit score is currently low!
Thanks to our Bad Credit Program applicants with bad credit can get bonded as easily as applicants with higher scores. Rates under this program are higher than for applicants with high scores. Yet, bond rates are not fixed and by improving your credit score over time you can get increasingly better rates on a yearly basis.
See the program page to learn more about how to get bonded with bad credit and to request a quote!
Claims Against Your Bond
A claim against this bond can arise when a bonded contractor fails to comply with the conditions of the bond, and the local or state rules and regulations that apply to them. Each bond is conditioned differently and there are different reasons why a claim can be filed against your bond.
For example, the bond form for the Grove city contractor registration states that the bond is put in place to protect the city and keep it harmless from losses or damages to persons or property inflicted by a contractor while they perform work under the license they have been granted by the city. The form further specifies that this applies to losses or damages regardless if they are caused by accident or due to a lack of care of skill on behalf of a contractor.
If a bonded contractor does cause losses or damages, a claim can be filed against their bond to request compensation. Compensation extended under a bond agreement can be as high as the full bond amount, if the amount of losses and damages is that high.
When a claim against a bond is filed, the surety backing the contractor bond has to compensate claimants. But the claims process does not end there. In turn, the bonded contractor must reimburse the surety in full for any compensation it extends. To avoid having to repay a claim, the best course of action for contractors is to strictly comply with the conditions of their bond!
Apply for Your Ohio Contractor Bond Today!
Want to get started with your application or request an exact quote on your bond? Complete our bond form, and we will contact you shortly with your quote and full information regarding the bonding process.
It will take about two working days for the surety to issue your bond after which we will forward the bond to you via standard mail as well as via email.
If you have any questions about the bonding requirements for contractors in Ohio, call us at 866.450.3412 to speak to our bond professionals! We look forward to hearing from you!
