Kentucky Contractor License Bonds

What you need to know about Kentucky Contractor License Bonds

Kentucky Contractor License Bonds

How much does a contractor bond cost in Kentucky?

In Kentucky, general contractors are not required to be licensed and bonded at the state level. The state only handles licensing for electrical, plumbing, and HVAC contractors.

General contractors are regulated on the local level. These cities, counties, and municipalities may have their own bonding and licensing requirements. If so, the government agency requiring the bond will determine the total amount of the bond.

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 Kentucky contractor license bonds for as low as 1% of the total 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 Kentucky?

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 Kentucky?

Because Kentucky contractor licenses are issued at the municipal level rather than the state, you’ll need to check with your local municipality for any licensing requirements. Below are some common requirements for contractor licenses throughout the State of Kentucky:

  • Completed license application form
  • Proof of general liability insurance and workers’ compensation insurance
  • Proof of Employer Identification Number (EIN) and other business documents
  • Paid application and license fees
  • Submission of the appropriate surety bond

Here are some resources you can use to learn more about the specific requirements in your jurisdiction: