Virginia Contractor License Bond
What is a Virginia contractor license bond?
A Virginia contractor license bond is an alternative option for Class A and Class B contractors in the Commonwealth of Virginia who don't meet the state's net worth requirements for licensure. Contractors may post a $50,000 surety bond instead of providing financial statements showing they satisfy the minimum net worth requirements outlined by the Virginia Department of Professional and Occupational Regulation (DPOR).
The option to post a contractor license bond as proof of financial responsibility came about with a law from the Virginia Board for Contractors that went into effect in July 2017. The law gives contractors more freedom to operate with a lower net worth.
How much do Virginia contractor license bonds cost?
The cost of a VA contractor license bond will vary from one surety bond company to the next. Through NNA Surety Bonds, the premium for the bond is $438 for a 2-year term and covers $50,000 of liability. The cost is the same whether you are applying for a Class A contractor license or a Class B contractor license.
Who needs a Virginia contractor license bond?
This bond is required for certain professionals seeking a contractor license in Virginia. Class A and Class B contractors in Virginia who don't prove their financial responsibility by submitting a financial statement must purchase and maintain a $50,000 contractor bond to be licensed in the state. This surety bond requirement does not apply to Class C contractors.
What are the different classes of contractor licenses in Virginia?
The Virginia Board for Contractors issues licenses in three classes:
Class A contractors:
- Required to have a minimum net worth of $45,000 or post a $50,000 surety bond.
- Required to have at least 5 years of experience.
- Work on individual contracts valued at $120,000 or more, or multiple projects valued at over $750,000 over a 12-month period.
Class B contractors:
- Required to have a minimum net worth of $15,000 or post a $50,000 surety bond.
- Required to have at least 3 years of experience.
- Work on individual contracts valued between $10,000 and $120,000, or multiple projects valued between $150,000 and $750,000 over a 12-month period.
Class C contractors:
- No net worth or surety bond requirement.
- Required to have at least 2 years of experience.
- Work on individual contracts valued between $1,000 and $10,000, or multiple projects valued at no more than $150,000 over a 12-month period.
How can I get a Virginia contractor license bond?
You can get this bond at a flat premium of $438 for the 2-year term without a credit check. You can buy the bond and download it today for immediate use. All we need is some basic information about you and your business.
What else do I need to know about Virginia contractor license bonds?
Like all surety bonds, a Virginia contractor license bond helps protect owners, suppliers, employees, and consumers if a contractor fails to comply with state licensing regulations.
Several cities and counties in Virginia may have their own surety bond requirements — separate from what the state requires. So be sure to consult with your city or county for more specific information.