What is a Rhode Island contractor license bond?
In Rhode Island, only underground utility contractors must undergo state licensure. These contractors are also required to obtain a $20,000 contractor license bond. This surety bond ensures that clients receive compensation for damages if the contractor fails to comply with regulations.
Other types of contractors and subcontractors (in-state and out-of-state) must complete contractor registration in Rhode Island. The Rhode Island Contractors’ Registration and Licensing Board governs licensing and registration processes.
There may be other license and bonding requirements at the state level. If you have questions, contact the city or county where you wish to perform work for complete details. You can also contact ZipBonds directly.
Learn more about how contractor license bonds work in our complete guide.
Get Your Rhode Island Contractor License Bond:
Rhode Island Contractor License Bond Costs
License bond applicants must pay a small percentage of the bond amount to obtain their bond. The premium rate is based on several factors. The most important of these is your personal credit score, followed by:
- Personal and business finances
- Assets and liquidity available
- Experience in your industry
If your credit score is excellent, you may pay between 1% and 2% of the bond amount. For instance, an underground utility contractor with a credit score over 700 may pay around $200-$400 for a $20,000 bond.
Frequently Asked Questions
You may still be able to get bonded if your credit is very low. Your premium may be higher for the first term, but you can improve your rate over time by strengthening your credit score and other financials.
Bond claims can be expensive and time-consuming, so it’s best to avoid them by fulfilling all aspects of agreements with clients and following all local, state, and federal regulations. If someone files a claim against your bond and it’s approved, your surety may compensate the client initially. However, you will be responsible for paying back the full amount – up to the total bond amount.
Get Your Contractor License Bond in Rhode Island
ZipBonds offers the fastest and most secure option for getting bonded. Our all-digital platform is intuitive and straightforward. Apply online, email firstname.lastname@example.org 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.