What is a South Carolina contractor license bond?
In South Carolina, the state government mandates many contractor licensing requirements. Applicants for a general, mechanical, residential builder, or residential specialty contractor license must apply through the state. These contractors are also required to post a contractor license bond. The Department of Labor, Licensing, and Regulation (LLR) handles licensing at the state level.
If you work in South Carolina, you may also have local requirements in some jurisdictions. Columbia, Forest Acres, North Augusta, Richland County, and Rock Hill require contractor bonds. For complete information, contact the jurisdiction where you plan to work.
How does a contractor license bond work?
A South Carolina contractor license bond helps protect clients and the state when engaging in business with a licensed contractor. If work is incomplete or performed improperly, customers can make a claim against a contractor’s bond.
Learn more about how contractor license bonds work in our complete guide.
Get Your South Carolina Contractor License Bond:
South Carolina Contractor License Bond Amounts and Costs
State Bond Requirements
The bond amount required depends on the job contract limit, outlined below by contractor type:
- Group 1 – $20,000 bond amount
- Group 2 – $80,000
- Group 3 – $200,000
- Group 4 – $350,000
- Group 5 – $500,000
- Group 1 – $7,000
- Group 2 – $20,000
- Group 3 – $40,000
- Group 4 – $80,000
- Group 5 – $400,000
- Registered residential specialty contractor – $5,000
- Licensed residential specialty contractor (HVAC, plumber, or electrician) – $10,000
- Residential builder – $15,000
These are the contractor types handled by the states. Other contractor types should check with local municipalities for complete information on licensing and bonding requirements.
License Bond Costs
To obtain a contractor license bond, applicants must pay a small percentage of the bond amount, known as a premium. The rate typically ranges from 1%-10%, depending on personal credit score. Here are the other factors an underwriter may consider:
- Financial statements (personal and business)
- Fixed and liquid assets
- Experience in the industry
Generally, a higher credit score will lead to a smaller percentage for the premium. Those with poor credit may still be able to get bonded for a higher premium rate (due to the increased financial risk).
Get Your Contractor License Bond in South Carolina
ZipBonds is 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.