South Carolina Contractor License Bond

South Carolina Contractor License Bond

Contractors in South Carolina may (and in some cases must) obtain a Contractor License Bond in order to perform their trade. Whether for a general, mechanical, or residential license, Jet Insurance Company provides contractors the ability to purchase their surety bond online in minutes.

QUOTE

South Carolina residential specialty contractors are required to obtain either a $5,000, $10,000, or $15,000 bond amount depending on what type of trade they perform. General and mechanical contractors only need a bond if they cannot or choose not to prove they have a certain minimum net worth based on the size of jobs performed. Bond amounts for general and mechanical contractors range from $7,000 to $350,000.

How Much Does A Contractor License Bond in South Carolina Cost?

Residential Specialty Contractors

With Jet, the cost for the contractor license bond starts at $8 a month. Annual terms may be selected at a discounted rate with a one-year bond at $75 or 2 years at $131. As the required bond limit increases, the rates will as well. The price is also based on the credit of the owner and years in business. Below are the preferred rate tiers for the various required bonds.

Bond TypeMonthly1 Year2 Years
$5,000 Registered Specialty Contractor$8$75$131
$10,000 Licensed Specialty Contractor$10$100$175
$15,000 Residential Builder$15$150$263
$15,000 Certificate of Authority$15$150$263
South Carolina Residential Specialty Contractor Bond Cost

Commercial General and Mechanical Contractors

The cost really depends on the bond amount required. You can see in the chart below where prices start based on the bond needed. Rates are based on the credit of the owner and years in business.

The bond is only required if you want to submit the bond in lieu of a financial statement or if the contractor does not meet the minimum financial limit. General and mechanical contractors in classes 3-5 (more on that below) who do not already have their financial statements prepared by a CPA or public accountant under GAAP principles may find the surety bond option less expensive than paying fees for the accounting service.

Bond TypeLimitMonthly1 Year2 Years
General Contractor (Group 1)$20,000$20$200$350
General Contractor (Group 2)$60,000$60$600$1,050
General Contractor (Group 3)$150,000$150$1,500$2,625
General Contractor (Group 4)$250,000$250$2,500$4,375
General Contractor (Group 5)$350,000$350$3,500$6,125
Mechanical Contractor (Group 1)$7,000$10$100$175
Mechanical Contractor (Group 2)$15,000$15$150$263
Mechanical Contractor (Group 3)$30,000$30$300$525
Mechanical Contractor (Group 4)$60,000$60$600$1,050
Mechanical Contractor (Group 5)$300,000$300$3,000$5,250
South Carolina General and Mechanical Contractor Bond Cost

Due to the license having a common expiration date, the Board and contractors find it most convenient to have the surety bond expire on the same date. With Jet, this is never a problem, especially with our monthly option. You can pay for the bond monthly and then opt to get an annual term on the expiration date or just continue with monthly payments. We notify the State that the bond will remain active either way.

Prorated bond terms are also available to get a partial year purchased. Be advised that minimum premiums do apply for prorated annual term bonds.

Important note: if a licensee is found in violation of regulations, the South Carolina Contractor's License Board may increase the surety bond amount required. One year after finding the violations have been resolved appropriately, the Board may reduce the bond amount back to normal.

What Is the Purpose of the South Carolina Contractor Bond?

The goal of the state is to promote a “safe place to work and live”. The enforcement of the surety bond is in line with this mandate as it guarantees the public’s compensation for damages from a third-party guarantor (the surety company). The South Carolina Department of Labor, Licensing and Regulation (LLR) is the agency that houses both the Residential Builders Commission and Contractor’s License Board which oversee the construction industry in South Carolina.

Contractor License Bonds are required by the State of South Carolina to protect the public from financial damages caused by a contractor's negligent or fraudulent behaviors. For example, a contractor performs substandard work and refuses to make necessary repairs. The customer can make a claim against the bond up to the bond’s limit to fix the issue. 

A surety bond does not give the contractor a free pass to perform shoddy work, not finish jobs or avoid payment to vendors. If the surety company makes payment to the damaged party, it will be after the board or commission’s final order and most likely other disciplinary action will have been taken. Should Jet make payment to the damaged party, the contractor still must indemnify Jet and make restitution. This is a key difference between surety and insurance and is the same across all surety bonds.

Who Needs the Bond and Who Do They Report To?

State of South Carolina Residential Builders Commission. The commission oversees the licensing of residential contractors in South Carolina as set forth by the South Carolina Legislature Code of Laws. Any contractor performing residential work over $5,000 needs to be licensed and bonded.

There are three types of residential contractors that are regulated by the Residential Builders Commission: (1) Registered Residential Specialty Contractor, (2) Licensed Residential Specialty Contractor, and (3) Residential Builder. Each type is allowed to perform certain trades and the related bond amount indicates the level of risk associated with each trade.

Registered Residential Specialty Contractor

Registered Residential Specialty Contractor

Residential Builder

For companies that do not hold a residential license, but have a subsidiary branch or operate under a fictitious name and perform residential construction work a Certificate of Authority bond is required in the amount of $15,000. A qualified residential construction individual must oversee that branch's operation. If a licensed individual owns 51% or more of the organization a Certificate of Authority bond is not needed, but (as you can easily guess) one of the other license bond requirements will need to be met. Companies with Certificates of Authority need to update their certificate annually on June 30th, as opposed to every other year.

South Carolina Contractor's License Board. This board oversees general and mechanical contractors which may seem to have some crossover with the residential commission, but these are for contractors completing commercial, public, and much larger residential projects. The South Carolina State Legislature set the rule for these contractors and gave the Board its authority which can be reviewed in the South Carolina Code of Laws.

General Contractors

Mechanical Contractors

The surety bond is not required if the general or mechanical contractor can prove a minimum net worth via the submission of a financial statement. Most often contractors will opt to use the surety bond as opposed to incurring the time and cost of preparing a financial statement.

Depending on the bid and/or job amount the contractor plans or does perform, the contractor is placed into 1 of 5 groups. The higher the planned amount, the higher the required net worth will be.

Groups 1 and 2 need only submit a financial statement with an affidavit of accuracy to the board to verify net worth. Groups 3-5 need to submit a financial statement in accordance with GAAP principles and they must be prepared by a licensed public accountant or CPA. 

Group NumberBids/Jobs Cannot ExceedRequired Net Worth
Group 1$50,000$10,000
Group 2$200,000$40,000
Group 3$500,000$100,000
Group 4$1,500,000$175,000
Group 5Unlimited$250,000
Minimum Net Worth Requirements for General Contractors

Group NumberBids/Jobs Cannot ExceedRequired Net Worth
Group 1$17,500$3,500
Group 2$50,000$10,000
Group 3$100,000$20,000
Group 4$200,000$40,000
Group 5Unlimited$200,000
Minimum Net Worth Requirements for Mechanical Contractors

Applying for a Contractor Bond With Jet

Take a minute and get your quote online now! Purchases can be made from the quote screen. All in all, you can have a copy of your bond in 3 minutes.

GET A QUOTE

You can also call us at (855) 296-2663 and get a quote over the phone during business hours.

How Does the Contractor License Bond Get Filed to the South Carolina LLR?

Bond Filing to the Residential Builders Commission
Residential contractors can let Jet file the bond for them directly to the Commission. The Commission allows for filing to be done via email to [email protected].

Should you want to file the original bond yourself (perhaps with other licensing paperwork), you can do so at the address below. You will have to request the bond to be mailed to you via email: [email protected].

South Carolina Residential Builders Commission
PO Box 11329
Columbia, SC 29211

Bond Filing to the Contractor's License Board
Those applying for a license or purchasing a bond with a new surety carrier will need to be mailed to the Board. Jet can mail the bond form in for you or you can select to do this yourself during checkout for the bond. The bond is filed to the following address:

South Carolina Contractor's License Board
PO Box 11329
Columbia, SC 29211

Bond renewals can be filed via email by Jet to the Board at [email protected].

Learn More About Contractor Bonds with Jet

How to Renew My Bond

With Jet it couldn’t be simpler, just make payment. If you want to read more, you can.

How to Cancel My Bond

Email us is the simplest way and you can learn more if need be here.

Bond Claim Process

Contractors can avoid claims and if falsely accused get help. Read more here.

South Carolina Residential Contractor Bond Form Example

South Carolina Residential Contractor Bond Form

South Carolina General Contractor Bond Form Example

South Carolina General Contractor Bond Form

Notary Bond Application:

X

Business Information:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Employee Dishonesty Bond Application:

Business Information:

Business Description:

Coverage Requirements:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Contract Bond Application:

X

Business Information:

Owner Information:

Job Details:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Worker's Compensation Application:

X

Business Information:

Business Description:

Coverage Requirements

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information: