There are three governing entities in Idaho that oversee Idaho state contractor license bond requirements. The Idaho Division of Building Safety enforces a bond for plumbing, HVAC, and water treatment contractors. The Idaho Department of Insurance and State Fire Marshal , requires all fire protection sprinkler contractors to secure a bond. The Idaho Department of Health and Welfare requires that contractors who install sewage disposal systems carry a bond.
No matter the license classification, contractors will only need to pay a portion of the bond limit for full coverage.
Plumbing, HVAC, fire sprinkler, and water treatment contractors needing a $2,000 license bond will have the option to pay a small percentage of the bond amount. The lowest rates we have seen in the market are as follows.
| Idaho Contractor License Bond Cost Examples | |
|---|---|
| Bond Limit | Monthly | Annual |
| Bond Limit: $2,000 Plumbing/Specialty Contractor Bond | Monthly | Annual: $9 | $100 |
| Bond Limit: $2,000 HVAC/Specialty Contractor Bond | Monthly | Annual: $9 | $100 |
| Bond Limit: $2,000 Fire Sprinkler Contractor Bond | Monthly | Annual: $9 | $100 |
| Bond Limit: $2,000 Water Treatment Contractor Bond | Monthly | Annual: $9 | $100 |
Subsurface sewage disposal system installers in Idaho have two different bond requirements but both bonds are $9 monthly or $100 in full. A $5,000 bond is required for a standard and basic alternative system installer's registration permit is. A $15,000 bond is required for a standard, basic and complex alternative system installer's registration permit.
| Idaho Sewage System Contractor Bond Cost Example | |
|---|---|
| Bond Limit | Monthly | Annual |
| Bond Limit: $5,000 Standard/Basic Sewage System | Monthly | Annual: $9 | $100 |
| Bond Limit: $15,000 Complex Sewage System | Monthly | Annual: $9 | $100 |
For the plumbers, HVAC and water treatment contractors the contractor bond original to [email protected] upon purchase. The original Fire Protection Sprinkler contractor bonds are mailed to the Idaho State Fire Marshal. For sewage disposal system installers the bond in sent in with the original application to the Director Idaho Department of Health and Welfare.
Surety bonds are required for contractors to guarantee they will fulfill contractual obligations. In cases they do not, a client can file a claim against the contractor license bond. If the claim is discovered to be valid by the surety company, they will pay the affected party up to the full bond limit. The contractor is then held liable to pay the surety company back that amount and potentially any additional legal fees incurred.
A claim may be filed against if the contractor:
Only five classes of contractors in the state of Idaho are required to carry a license bond. Most classes are not regulated, but should carry other coverages and provide warranties to avoid financial consequences that can arise for damages to clients and third parties.
The State Fire Marshal requires all fire sprinkler protection contractors to obtain general liability insurance with aggregate limits of no less than $250,000. General liability insurance is recommended for all contractors as it provides coverage when third-party damages or injury occurs on the job site. Many jobs will require the contractor to hold a general liability policy prior to starting work.
Contractors who employ full-time workers may need to purchase and maintain a workers’ comp policy, which covers employees if they become ill or obtain an injury due to the job.
Public projects often require contractors to secure a city or county bond to ensure the contractor will deliver work per the contract.