Short answer: Many states require contractors to post a surety bond to get licensed or registered. California requires a $25,000 bond, Washington $30,000 for general contractors and $15,000 for specialty contractors, and Oregon $15,000 to $25,000 for residential contractors plus minimum general liability insurance of $100,000 to $500,000. In Arizona and Nevada, the licensing agency sets the bond amount within ranges in the statute.
A license bond protects customers and the state. It isn't liability insurance and doesn't protect the contractor's own business.
The table
| State | Bond requirement | Insurance and other rules | Source |
|---|---|---|---|
| Alaska | Surety bond to register: $25,000 general contractor, $20,000 general contractor with residential endorsement doing only residential work, $10,000 specialty contractor | Also must show workers' comp (as required) and liability insurance of at least $20,000 property damage, $50,000 per person and $100,000 per occurrence for injury | AS 08.18.071, 08.18.101 |
| Arizona | Surety bond or cash deposit required before an original license and to renew; amounts fixed by the registrar by classification and annual volume | General residential contractors: $5,000 to $15,000. General commercial contractors with $10 million or more in annual volume: $50,000 to $100,000, with lower ranges for smaller volume | A.R.S. §32-1152 |
| California | Contractor's bond of $25,000 to get, renew or keep a license | Workers' comp proof (or an exemption) and other requirements also apply; see our California contractor guide | Cal. Bus. & Prof. Code §7071.6 |
| Iowa | Out-of-state contractors: a $25,000 surety bond to register (or a statement that you're prequalified to bid on Iowa DOT projects). Iowa-based contractors register without this bond | The bond secures payment of Iowa taxes and unemployment contributions and can be raised if it isn't enough. All registered contractors must show workers' comp coverage, an exemption, or a statement that it isn't required | Iowa Code §§91C.2(3), 91C.7 |
| Nevada | Surety bond or cash deposit required before a license is issued and to renew | Amount fixed by the State Contractors Board based on financial and professional responsibility and size of operations, from $1,000 to $500,000 (with exceptions); failing to keep the bond is cause to deny, suspend or revoke the license | NRS §624.270 |
| New Mexico | Contractor license applicants must furnish a $10,000 surety bond at first licensure and keep it for every renewal period | Bond pays to fix division-certified code violations the contractor didn't correct; claims within 2 years of final inspection or certificate of occupancy, whichever is earlier. If the bond lapses, the license is canceled | NMSA §60-13-49; 14.6.3.8(C) NMAC |
| Oregon | Residential contractors: surety bond of $25,000 (general), $20,000 (specialty) or $15,000 (limited) | General liability insurance of at least $500,000 (general), $300,000 (specialty) or $100,000 (limited), plus a responsible managing individual. Commercial contractors have separate amounts (ORS 701.084) | ORS 701.068, 701.081 |
| Utah | No automatic bond: to get, renew or reinstate a license you show financial responsibility either with a signed financial responsibility questionnaire or with a bond in the form and amount set by rule | You must keep financial responsibility for the whole license period, and the division may audit it. Bond amounts are set in the state's administrative rules, so check with the Utah Division of Professional Licensing | Utah Code §58-55-205 |
| Washington | Registration surety bond of $30,000 for general contractors or $15,000 for specialty contractors | If the bond is canceled, the registration is automatically suspended until a new bond is filed | RCW 18.27.040 |
| Wisconsin | A dwelling contractor applying for a certificate of financial responsibility must show either a surety bond of at least $5,000, conditioned on following the one- and two-family dwelling code, or general liability insurance of at least $250,000 per occurrence | The bond or liability policy is one of the proofs the state requires for the certificate, and the department reviews them; continuing education rules also apply | Wis. Stat. § 101.654(2)(a) |
We list only states where we read the official text ourselves in October 2026. A state that is missing is not covered here; check that state's statute or insurance department.
What contractors should line up
- License bond in the amount your state requires.
- General liability insurance, required by law in some states and by most clients everywhere.
- Workers' comp if you have employees.
- Commercial auto for work vehicles.
See California contractor insurance and bond requirements.
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Methodology
Each row was read from the official source linked in the Source column in October 2026. This is general information, not legal advice. See also the state insurance rules hub.
Frequently asked questions
How much is a California contractor's bond?
$25,000 (Bus. & Prof. Code §7071.6).
What bond does Washington require for contractors?
$30,000 for general contractors and $15,000 for specialty contractors (RCW 18.27.040).
Does Oregon require contractors to carry liability insurance?
Yes. Residential contractors need at least $100,000 to $500,000 depending on license type (ORS 701.081).
Alishahi Insurance · 439 N Canon Dr, Penthouse, Beverly Hills, CA 90210 · (877) 711-4545 · CA License #4348151. General information only. Not legal, tax or financial advice, and not a coverage determination. Coverage depends on policy language and underwriting, and rules vary by state.