What is a Hawaii contractor license bond?
Individuals and businesses acting as builders or contractors in the state of Hawaii are required to obtain a license bond. The Contractor License Board (CLB) determines the bond amount, the minimum being $5,000. These surety bonds ensure that the public receives compensation should the contractor fail to comply with any local or statewide laws regarding conduct on projects.
Obtaining a license bond is part of the application process for getting a contractor’s license through the CLB. There is no set license bond amount in Hawaii, with the Hawaii Revised Statute 444-16.5 granting the CLB authority to determine the bond limit for each individual contractor. The Board will examine the contractor’s experience and financial situation in determining the bond limit.
Learn more about how contractor license bonds work in our complete guide.
Get Your Hawaii Contractor License Bond:
Hawaii Contractor License Bond Costs
A contractor’s license bond in Hawaii costs between 1%-10% of the bond amount per year, depending on the applicant’s personal credit score and business experience. With an excellent credit score, applicants may expect to pay a yearly premium of $100-$150 for a $10,000 bond. Given the higher risk, those with a subpar credit score may expect to pay a higher percentage of their bond limit.
Hawaii contractor licenses and license bonds expire on September 30th of even-numbered years (2022, 2024, and so on) and must be renewed on or before this date.
Frequently Asked Questions
Hawaii also requires contractors to have liability insurance. A contractor must purchase insurance coverage of $100,000 per person/$300,000 per accident for bodily injury. For property damage, they must buy $50,000 of coverage per accident.
To avoid claims against your contractor license bond, follow all license regulations in Hawaii, including the following, which often trigger claims if ignored:
- Pay wages to all hired employees.
- Pay all subcontractors and vendors for their services.
- Do not engage in or allow representations of the business to engage in acts of fraud.
Get Your Contractor License Bond in Hawaii
ZipBonds offers the fastest and most secure option for getting bonded. Our all-digital platform is intuitive and straightforward. Apply online, email email@example.com or call 888.435.4191 to speak with an agent directly.
Founders Ryan Swalve and Zach Mefferd formed the vision for ZipBonds.com when they realized how overly complicated it was to help clients place surety. The frustration of being unable to incorporate the technology they’d used in other insurance-focused projects left them thinking “there has to be a better way.”
Fast forward a couple of years, and that better way is the impetus of everything we do at ZipBonds. We constantly look for innovative ways to improve the bonding process for our clients and agents. Our team comprises individuals who understand all angles of surety – for companies, agencies, and individuals. Incorporating everyone’s point of view to improve the process while simultaneously integrating cutting-edge technology is what sets our business apart.