How much does a contractor bond cost in Mississippi?
Various cities, counties, and local authorities throughout the State of Mississippi require contractors to post surety bonds. Below are the required bond amounts for popular municipal bonds:
- Brandon Contractor Bond: $5,000
- Clinton Contractor Bond: $5,000
- Hattiesburg Contractor Bond: $2,000
- Jackson Contractor Bond: $5,000
- McComb Contractor Bond: Varies
- Tate County Contractor Bond: $5,000
- Tupelo Contractor Bond: $5,000
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 Mississippi 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 Mississippi?
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 Mississippi?
To obtain your general contractor’s license in Mississippi you must meet the MS State Board of Contractors licensing requirements by completing the following steps:
Complete the license application form
Register your business with the Mississippi Secretary of State
Provide proof of general liability and workers’ compensation insurance
Pass the business and law exam (and technical exam if necessary)
Pay the $200 application fee
Pay the licensing fee ($400 for commercial contractors, $50 for residential contractors)