Contractor License Bond in Georgia

What this bond requires in Georgia

Georgia is another state where the bond is optional — it exists as an alternative for contractors who can't or don't want to prove the net worth required by the state. Residential Basic and Residential Light Commercial need to show $25,000 in net worth OR post a $25,000 surety bond. Most contractors with stable finances just submit financial statements and skip the bond. General Contractor (unlimited tier) requires $150,000 in net worth OR a $150,000 bond. That's a much higher bar, and for contractors who don't have $150,000 sitting on the balance sheet, the bond becomes the only way to qualify. Liability insurance is required regardless. Georgia requires all licensed contractors to carry at least $500,000 in general liability coverage, whether they prove net worth or post a bond. The insurance is separate from the financial responsibility requirement and is mandatory. Run the math. A $150,000 bond at 2% premium costs about $3,000/year. Keeping $150,000 of demonstrable net worth locked in your business is a much larger opportunity cost for most contractors. The bond is the cheaper path for a growing general contractor.

Who requires it

The contractor license bond is required by the Georgia State Licensing Board for Residential and General Contractors under O.C.G.A. §43-41-6.

How to file in Georgia

Georgia licenses residential and general contractors through the SLBRGC. Every licensee must carry general liability insurance of at least $500,000. Financial responsibility can be satisfied by demonstrating net worth OR by posting a surety bond — the bond is an alternative, not a requirement. Residential contractors need $25,000 net worth or a $25,000 bond. General contractors at the unlimited tier need $150,000 net worth or a $150,000 bond. The bond, when used, runs to the Board for the benefit of consumers.

Common questions

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