Delaware Contractor License Bonds
Learn more about Delaware Contractor License Bonds
How much does a contractor bond cost in Delaware?
Various cities and counties in the State of Delaware require contractors to post a surety bond. Below are the required bond amounts for popular Delaware contractor license bonds:
- Newark General Contractor License Bond: $50,000 to $100,000
- Newark Limited Subcontractor Bond (HVAC, Fire, Plumbing, Mechanical): $50,000
- Newark Minor Renovation Contractor Bond: $10,000 to $25,000
- New Castle County Class A Contractor Bond: $150,000
- New Castle County Class B Contractor Bond: $50,000
- New Castle County Class C Contractor Bond: $25,000
- New Castle County Master Plumber Bond: $10,000
- Wilmington Plumbing Contractor Bond: $3,000
- Delaware Non-Resident Contractor Bond: Varies
The surety company issuing the bond determines your premium rate, which is the percentage of the total bond amount you pay as the premium. During the application process, the surety company evaluates your personal credit, financial statements, industry experience, and licensing history.
EZ Surety can issue premiums for Delaware contractor license bonds for as low as 1% of the required bond amount for applicants with standard credit. If your credit is below average, we can still offer a competitive rate for your contractors license bond.
Why are contractor bonds important in Delaware?
Contractor license bonds hold licensed contractors accountable for the quality of their work and protect the public from damages they’ve incurred due to the contractor’s violation of licensing laws.
When the surety company issues the bond, they provide a financial guarantee to the local municipality that the contractor will comply with the regulations set forth in the contractor license. If the contractor violates these regulations, causing a loss to the consumer, the consumer can file a claim against the bond.
If the claim is valid, the surety company will cover the costs to repair the damage up to the amount of the bond. The contractor is then liable to reimburse the surety company for all damages paid.
How do I get my general contractor's license in Delaware?
To obtain your general contractor's license in Delaware you must meet the Delaware Division of Revenue licensing requirements by completing the following steps:
- Complete the license application form
- Register your business with the Delaware Division of Revenue
- Provide proof of general liability insurance
- Provide proof of workers' compensation insurance
- Provide your Federal Employer Identification Number
- Pay the $75 annual license fee