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North Carolina contractor license bonds.
From $3,500.

A North Carolina general contractor who cannot show the working capital the board requires may file a surety bond instead: $175,000 for a limited license, $500,000 for intermediate, $1,000,000 for unlimited. Our carriers write all three at 2% of the bond amount, from $3,500, after one soft credit pull.

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One amount per limitation: $175,000, $500,000 or $1,000,000 under 21 NCAC 12A .0204(e)

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In place of the working-capital test of $17,000, $75,000 or $150,000, or an $80,000 net worth for a limited license

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Continuous bond, proof due with every renewal, written by an A-rated surety as the rule requires

A-ratedA.M. Best carriersSoft pullnever affects your scoreFrom $3,5002% of the bond amount

Trusted by industry leaders

How it works

Three steps to filed.

Your license is waiting on this bond. Here is the whole process, with no broker phone tag:

TODAY · ONLINE

Apply online

Business details, owner information, the tier for your limitation, an effective date and a 1-, 2- or 3-year term. The only extra step is a one-time consent to a soft credit pull.

WITHIN 48 HOURS

Reviewed & approved

Six-figure contractor bonds are underwritten. If anything else is needed, an underwriter reaches you within 48 hours; the pull never affects your score.

AFTER APPROVAL

E-sign & file with the Board

Pay online and receive the executed bond in the exact name on your license, ready to submit with your application, renewal or limitation increase. Wet-ink originals mailed whenever the board insists.

About this bond

What it is and who needs it.

What the bond actually does

North Carolina licenses general contractors for any project of $40,000 or more through the NC Licensing Board for General Contractors under G.S. Chapter 87, Article 1. Every license carries a limitation that caps a single project: limited up to $750,000, intermediate up to $1,500,000, unlimited with no cap (G.S. §87-10(a1)).

To hold that limitation you prove financial responsibility under 21 NCAC 12A .0204: working capital of $17,000 (or $80,000 of net worth) for a limited license, $75,000 for intermediate and $150,000 for unlimited, the larger two shown by an agreed-upon-procedures report on the Board’s form or by an audit. Instead of meeting the test, you may file a continuous surety bond of $175,000, $500,000 or $1,000,000, written by a surety licensed in North Carolina and rated A- or better by A.M. Best.

The State of North Carolina is the obligee, and the bond is for the benefit of anyone damaged by a breach of your construction contract, a breach of a contract for labor, materials or professional services, or an unlawful act or omission in performing a construction contract. It stays in force for as long as you hold the license or until you prove the working capital, proof is due with every annual renewal, and it sits alongside any bid, performance or permit bond a project requires. If the surety cancels, you and the surety each notify the Board within 30 days, and the license is suspended unless new proof arrives within 30 days.

21 NCAC 12A .0204(e)In lieu of demonstrating the level of working capital … an applicant may obtain a surety bond … in the amount of one hundred seventy-five thousand dollars ($175,000) for a limited license, five hundred thousand dollars ($500,000) for an intermediate license, and one million dollars ($1,000,000) for an unlimited license. … The bond shall list the State of North Carolina as obligee and be for the benefit of any person who is damaged by an act or omission of the applicant … The bond shall be continuous in form and shall be maintained in effect for as long as the applicant maintains a license.

You need this bond if you are

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Applying for a limited license and filing the $175,000 bond instead of showing $17,000 of working capital or $80,000 of net worth

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Applying for an intermediate license and filing the $500,000 bond instead of showing $75,000 of working capital

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Applying for an unlimited license and filing the $1,000,000 bond instead of showing $150,000 of working capital

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Raising your limitation and bonding up to $500,000 or $1,000,000 rather than paying for an audit

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Renewing on a bond because proof of it is due with every annual renewal

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A new or growing company keeping cash in the business instead of tying it up to pass the capital test

One application, then a quick review.

These are the carrier’s actual underwriting fields, including a one-time consent to a soft credit pull. Submit once; an underwriter follows up within 48 hours if anything else is needed.

Start the application →

FAQ

Common questions.

Which bond amount do I need?The amount follows your license limitation under 21 NCAC 12A .0204(e): $175,000 for a limited license (projects up to $750,000), $500,000 for intermediate (up to $1,500,000) and $1,000,000 for unlimited. The Board accepts no other figure, and the bond must be in the exact name on your license.

How much does the bond cost?Our carrier charges 2% of the bond amount for a one-year term: $3,500 for $175,000, $10,000 for $500,000 and $20,000 for $1,000,000. The rate is the same for every applicant; the one soft credit pull decides eligibility, not the price. Pick a 1-, 2- or 3-year term at the application.

Does every NC contractor need this bond?No. The license itself has no bond requirement. The bond is an alternative to the financial-responsibility test: $17,000 of working capital or $80,000 of net worth for a limited license, $75,000 for intermediate and $150,000 for unlimited. A limited applicant usually passes with the balance sheet in the online application; the larger tests take an agreed-upon-procedures report or an audit. File the bond when you would rather not, or cannot, show the figures.

Is there a credit check?Yes, one soft credit pull, never a hard inquiry, and it never affects your score. It informs approval of a six-figure bond; the premium is 2% of the amount either way.

What does the bond guarantee?It names the State of North Carolina as obligee and protects anyone damaged by a breach of your construction contract, a breach of a contract for labor, materials or professional services, or an unlawful act or omission in performing a construction contract. The Board cannot order refunds or repairs, so a harmed owner or supplier looks to the bond and the courts. If the surety pays a claim, you repay the surety; the bond is not insurance for you.

How long does it last, and when does it renew?The bond is continuous: it stays in force for as long as you hold the license, or until you prove the working capital and come off it. Your license expires on January 1, becomes invalid 60 days later with a $10 monthly late fee meanwhile, and proof of the bond is due with every renewal. You will get renewal notices 60 and 30 days before your term ends, with autopay available.

What happens if the bond is cancelled?The rule requires you and the surety each to tell the Board in writing within 30 days. Unless new proof of financial responsibility reaches the Board within 30 days of the cancellation, the license is suspended until it does.

Does this cover bids and contracts too?No. The rule says it is in addition to, and not in lieu of, any other bond. Public work in North Carolina needs separate performance and payment bonds once the project exceeds $300,000 and your contract exceeds $50,000 (G.S. §44A-26), and most public bids require a bid bond, which we write free.

What else does the license take?An application fee of $75, $100 or $125 by limitation plus a background check, a PSI exam for your classification with a pass mark of 70, a qualifier who is an owner, officer or employee working at least 20 hours a week, and about two weeks of Board processing. Building, Residential and Unclassified qualifiers also complete 8 hours of continuing education a year. North Carolina has no full reciprocity; exam waivers exist with South Carolina, Tennessee, Louisiana, Georgia, Mississippi, Alabama and Florida, and the NASCLA exam is accepted for Building.

How do I contact Light RFP about this bond?Email insurance@lightrfp.com. It reaches the bond team at Light RFP Risk Management Services LLC (NY DFS License # PC-1978982). Write to us about quotes, applications, bond forms or certificates. We will respond within 24 hours.

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Other North Carolina bonds.

The Licensing Board is waiting on one document.

From $3,500 for the $175,000 limited-license bond, soft pull only. Pick your tier and file with NCLBGC.

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