How much does a contractor bond cost in Rhode Island?
In the State of Rhode Island, underground utility contractors need a license to legally operate. The Contractors’ Registration and Licensing Board (CRLB) requires utility contractors to post a $20,000 surety bond for eligibility to obtain a license.
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 Rhode Island contractor license bonds for as low as $100 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 Rhode Island?
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 Rhode Island General Laws § 5-65-1 et seq. 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 Rhode Island?
The State of Rhode Island does not require general contractors to obtain a license to legally operate in the state.
Utility contractors must meet the Rhode Island CRLB licensing requirements by completing the following steps:
- Complete the license application form
- Provide proof of Rhode Island residency
- Provide proof of general liability insurance
- Pass a written examination
- Provide proof of workers’ compensation insurance
- Pay the $50 pre-license fee and $200 license fee