Washington Contractor License Bond

All fire protection sprinkler system contractors working in the State of Washington must submit a surety bond. The bond amount varies by contractor level:

• Level 1, 2, and “I&T” contractors: $6,000 bond
• Level 3 and Level “U” contractors: $10,000 bond

Complete surety bond requirements are posted by the Washington State Legislature. Additional licensing requirements include the following:

• You must have at least one full-time employee certified as a Certificate of Competency Holder.
• Register with the Labor and Industries agency, Department of Licensing, Department of Revenue, Secretary of State, and/or Department of Social Health Services.
• Submit a contractor application.

The contractor license bond guarantees that the public receives compensation for damages if you, as the contractor, fail to comply with contractor registration law. If you’re bonded and don’t fulfill your obligations, someone may file a claim against your bond. The bond amount represents the maximum liability, meaning that you cannot be held liable for more than $12,000 as a general contractor, $10,000 as a fire sprinkler contractor, or $6,000 as a specialty contractor. 

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

You will pay a small percentage of the bond amount to obtain your contractor license bond. This is known as the bond premium. In Washington, your personal credit score is the main factor underwriters consider when setting your bond premium. Your surety may also consider your business finances, liquid and fixed assets, and industry experience. 

You may pay as little as 1% of the bond amount for your premium if you have excellent credit. The premium could be higher if your credit score is poor, sometimes up to 5%.