Kentucky Contractor License Bond

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Construction contractor with a license bond

What is a Kentucky contractor license bond?

Kentucky regulates contractors and construction-related companies much like many other businesses in the state. The first step to getting your business license is registering with the State of Kentucky. Electrical, plumbing, HVAC, and other types of contractors may also need a Kentucky contractor license bond to operate in the state.

License bonds ensure contractors act as legally compliant professionals, following all rules and regulations regarding building codes, taxes, etc. If a contractor breaks the law, the surety bond helps protect parties that may suffer harm or experience devastating financial effects.

Kentucky contractor license bonds are contracts between three parties:

  • The contracted company (the principal)
  • The city requiring the bond for the work taking place in their area (the obligee)
  • An organization taking on the responsibility for incidents that may occur (the surety)

Learn more about how contractor license bonds work in our complete guide.

Get Your Kentucky Contractor License Bond:

Kentucky Contractor License Bond Requirements

The Commonwealth of Kentucky requires contractors to obtain bonds to work on construction projects. The Kentucky Department of Housing, Buildings, and Construction oversees the contractor licensing process. However, municipalities often directly enforce licensing stipulations. Governments at the state and local levels may require surety bonds based on the type of construction project or contract work.

For example, let’s say a contractor needs a state-level Kentucky license bond when a construction project involves demolition wrecking. There are types of wrecking licenses:

  • Wrecking “A” license is for the wrecking of structures less than 35′ tall, or two stories, or less than 3,000 square feet. You will need to pay a $125 fee, obtain $300,000-$600,000 worth of insurance, and secure a $10,000 surety bond.
  • Wrecking “B” license is for the wrecking of structures that do not meet the requirements of Type A. You will need to pay a $225 fee, obtain $1,000,000-$2,000,000 worth of insurance, and secure a $25,000 surety bond.

Local licenses also often have “A” and “B” structures to their requirements based on the type of activity needed. Because of this, Kentucky contractor licensing can be challenging to navigate. If you plan to operate your business in Kentucky, check with your local governing organization (or contact ZipBonds directly) to understand when you’ll need a Kentucky contractor’s license to operate your business.

Get Your Contractor License Bond in Kentucky

ZipBonds is the fastest and most secure option for getting bonded. Our all-digital platform is intuitive and straightforward. Apply online, email or call 888.435.4191 to speak with an agent directly.



Founders Ryan Swalve and Zach Mefferd formed the vision for 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.