Commercial Surety 101: Why Contractors Need to Be Licensed and Bonded


Most states require contractors to be licensed to obtain permits for projects. State and local jurisdictions may also require contractors to be bonded in order to get their license. These permit and license bonds and various miscellaneous bonds are known as commercial bonds and are written by surety companies.

There are many types of commercial bonds, and state licensing boards usually have a list of bonding requirements on their website. Each jurisdiction’s requirements are a little different. An Old Republic Surety representative can provide information and answer any questions you have about bonding.