Virginia Contractor License Bond Requirements
To get a contractor license in the state of Virginia, you must either demonstrate a certain amount of net worth or get a $50,000 contractor license bond.
Similarly, to get registered in certain counties in the state, such as Prince William County or Fairfax County you must also post a surety bond. Bonds in these two counties must be in an amount of $10,000.
Why Is This Bond Required?
These license bonds are a type of guarantee that contractors in Virginia will comply with the provisions of Chapter 11, Title 54.1 of the Code of Virginia. They also guarantee that contractors licensed on a local level will comply with local ordinances and regulations, such as the cities’ Code of Construction.
If a licensed contractor violates these regulations and in doing so causes damages or losses to anyone, a claim can be filed against their bond. The surety company must then determine whether and what amount of compensation to extend to claimants.
For the bond required of contractors from the DPOR, the maximum amount of compensation that can be extended under one claim is $20,000. The aggregate liability of the surety and the contractors is set at the full penal sum of the bond but not more.
For a detailed explanation of how bonds work, and why contractors need to get bonded, see our ‘What is a surety bond’ guide!
See the sections below to learn more about the different bonds that are required in Virginia, how much they cost, and how to get yours!
Do you need more information about the bonding requirements for contractors in Virginia? Call us at 866.450.3412 anytime to speak to one of our surety professionals.
What’s The Cost of The Virginia Contractor License Bond?
Some of the bonds required of contractors in the state of Virginia include:
- $50,000 bond for a Class A or Class B contractor license from the state Department of Professional and Occupational Regulation
- $10,000 bond for a home improvement contractor license in Fairfax County
- $10,000 bond for a building contractor license in Prince William County
These are only some of the bonds required in the state. Various other municipalities across the state may require you to post a license bond when applying for a license or permit. Make sure to contact your local licensing office to find out more about the local bonding requirements!
The bond amount is not the same as the bond cost. Your bond’s cost, also known as the bond premium, is equal to a fraction of the full amount of the bond.
Factors That Determine Your Bond Cost
Your personal credit score is the main factor that influences your bond cost. The higher your credit score is, the cheaper it is for you to get bonded.
Applicants with a credit score of 700 FICO or higher can expect to get bonded at a rate as low as 1% of the full bond amount. Those who have a score below that are typically bonded at a rate of up to 3%. Finally, applicants with a so-called bad credit score can usually get a bond at a rate of 3%-5%.
While credit score is important, there are also other factors that sureties take into account when determining your bond rate. These include:
- Personal and business financial statements
- Fixed and liquid assets
- Work experience and record
To learn more about how the cost is determined by surety companies, see our detailed surety bond cost guide!
Want to get an estimate of the cost of your bond? See the table below!
| Virginia Contractor License Bond Cost Based on Credit Score | |||||
| License type | Bond Amount | Credit Score | |||
| Above 700 | 650-699 | 600-649 | Below 599 | ||
| Class A and B Virginia contractors | $50,000 | $500-$1,000 | $750-$1,500 | $1,000-$2,000 | $1,500-$2,500 |
| Fairfax county contractor, Prince William county contractor | $10,000 | $100-$200 | $150-$300 | $200-$400 | $300-$500 |
How to Get a Contractor License Bond in Virginia
Ready to apply for your bond? Click on the banner below and complete the brief application form. You will then receive a free quote on your bond as well as further details about the bonding process.
If you have any additional questions about contractor license bonds in Virginia, call us at 866.450.3412!
