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License, permit and contract bonds to keep your company compliant and on the jobsite

From state license bonds to same-day bid bonds on public works projects, Jet Surety offers the bonds contractors need to get licensed, win projects, and stay compliant.

Hand-drawn construction crane sketch representing contractor bond projects

Surety Bonds Without the Runaround

License bonds, city bonds and project-specific performance/payment bonds are unique in their forms and filing process. Our simple application walks you through the process to ensure you get the right bond the first time, whether the obligee is a state licensing board or a private project owner.

Surety bond certificate and license approval illustration

License bonds vs. contract bonds

Not every bond serves the same purpose. License bonds satisfy regulators so you can hold an active contractor license. Contract bonds (bid, performance, and payment) satisfy project owners on specific jobs.

Contractor license bonds

Required by state, county, or city agencies before you can be licensed, registered, or permitted. The bond protects consumers, employees, vendors, and regulators—not the contractor. Penalty amounts are set by each agency and commonly fall in a mid–five-figure range for statewide license bonds.

Payment/Performance bonds

A project-specific type of bond that may be required before you can start work on a construction project. Depending on bond type, it helps protect the project owner, workers, and suppliers if a contractor fails to complete the project as agreed by the contract or fails to pay for labor or materials. These bonds can be a requirement for work performed for the federal government, state agencies, municipalities and even private project owners.

What every licensed contractor should know

Over 1,000 state, county, and city agencies require contractor bonds nationwide. If a regulator told you that you need a bond before you can work, this is what it means and why it exists.

What It Is

A contractor license bond is a regulatory surety bond that provides a form of financial protection for consumers, employees, or government agencies if a contractor fails to meet certain legal or contractual obligations.

Why It's Required

State, county, and city agencies use license bonds to protect the public from defective work, unpaid wages, code violations, and breach of contract without requiring contractors to post the full penalty amount in cash.

Who Needs One

Any registered contractor whose governing agency requires a bond to register and maintain licensing, or pull permits. Some agencies only require contractor registration for specific classification such as GCs, electricians, roofers, plumbers and certain specialty trades.

Amounts Vary by Agency

State and local license bond penalties are set by statute or ordinance—often from about $10,000 to $25,000 or more. Confirm the amount on the current agency form, not a generic product title.

Name and Form Must Match

Business name, license identifiers, obligee, and bond form must match agency records exactly. Mismatches are a common reason filings are rejected even when the dollar amount looks right.

Renewals & Filing

License bonds must stay active for the license to remain valid. We help with filing where electronic submission is allowed and send reminders before renewal deadlines.

Contract bonds

Performance/Payment bonds that meet your project-specific requirements.

Contract bonds are job-specific, not tied to your license. They give project owners confidence that work will be completed and that subs and suppliers will be paid if you cannot fulfill the contract.

Bid bonds

Often required when submitting bid documents, it is a tool showing the project owner that your bid is serious and, if awarded the project, you have the backing of the surety to obtain the necessary bonds required by the contract. These are no-cost bonds, intended as a financial prequalification the surety provides.

Performance bonds

Guarantee you will complete the project according to contract terms. If you default, the surety may step in to fulfill the obligation or compensate the owner up to the bond amount.

Payment bonds

Ensure subcontractors, suppliers, and laborers get paid on public and many private projects. Often required alongside performance bonds under federal and state public works laws.

Maintenance & warranty bonds

Cover post-completion defects for a defined period after substantial completion, protecting the owner if warranty work is not performed as required.

  • Bid bonds are typically the first step, and performance and payment bonds follow once the contract is awarded
  • Federal construction contracts of $100,000 or more require performance and payment bonds under the Miller Act
  • Most states have similar "Little Miller Act" requirements for state and local public works
  • Private owners and GCs increasingly require contract bonds on large commercial and multifamily projects

From application to filing

1

Tell us what you need

License bond, bid bond, or full contract bond package. Share your state, obligee, and bond amount or project value.

2

Get approved quickly

Many license bonds quote in minutes online. Larger contract bonds may require financials and a soft credit review without slowing down bid deadlines.

3

Pay & download

Choose annual or monthly terms where available. Your bond form and receipt are available immediately after purchase.

4

We file when we can

We electronically file with licensing agencies where permitted. When hand-filing is required, we provide clear instructions so nothing holds up your license or project.

Why surety beats a cash deposit

Regulators could require you to post the full bond penalty in cash upfront. A surety bond lets you pay a small premium instead while still giving the public the same financial protection.

  • The surety promises regulators that valid claims will be paid
  • You gain financial credibility most contractors cannot provide alone
  • Frivolous claims are investigated before any payout is made
  • Unlike insurance, the contractor remains responsible for reimbursing the surety after a valid claim (indemnification)

What we need to get started

  • Bond type, obligee name, and required bond amount or contract value
  • Business name, license number, and state (must match agency records exactly)
  • For contract bonds: bond form, project details, and bid or start timeline
  • For larger bonds: business financials, work-in-progress schedule, and key personnel résumé

Need a bond before bid day?

Rush requests are common around license renewals and bid deadlines. Contact our team with the obligee, bond form, and contract value, we will confirm capacity and next steps quickly.

Looking for state-specific education on license and permit bonds? Visit the Surety Bond Resource Center, including our California surety bonds guide and Texas surety bonds guide.

Agents Ready to Help

A bond expert is ready to answer all your bond questions: license bonds, permit bonds, bid bonds, performance bonds, whatever your surety needs may be.

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Licensed insurance advisor ready to help with contractor coverage