Contractor License Bond in Louisiana

What this bond requires in Louisiana

Louisiana does not impose a state surety bond requirement for its Commercial, Residential, Home Improvement, or Mold Remediation contractor licenses; instead, all applicants must submit an LSLBC Financial Statement dated within 12 months of filing (La. R.S. 37:2150 et seq.). Residential and Home Improvement licensees must additionally carry general liability insurance of at least $100,000 and workers compensation coverage. Project-level payment and performance bonds may still be required by individual project owners or under public works contracts, but they are not part of the license itself.

Who requires it

The contractor license bond is required by the Louisiana State Licensing Board for Contractors (LSLBC) under La. R.S. 37:2150 et seq..

How to file in Louisiana

Applicants apply through the LSLBC online ARLS portal, submitting the application, the LSLBC Financial Statement (and a letter of credit if the net worth threshold is not met), proof of insurance and workers compensation where applicable, exam results for the applicable classification, and the required fees. The Board reviews applications at its monthly meeting; no surety bond is filed as part of the license itself.

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FAQ

Common questions

Is a contractor license bond required in Louisiana?

Louisiana does not require a surety bond for general commercial or residential contractor licenses; the LSLBC requires a financial statement demonstrating net worth instead.

How much is the bond in Louisiana?

Louisiana does not publish a single flat amount. See the state-specific notes for how it is determined.

Who requires the bond?

The bond is required by the Louisiana State Licensing Board for Contractors (LSLBC).

How is the bond filed?

Applicants apply through the LSLBC online ARLS portal, submitting the application, the LSLBC Financial Statement (and a letter of credit if the net worth threshold is not met), proof of insurance and workers compensation where applicable, exam results for the applicable classification, and the required fees. The Board reviews applications at its monthly meeting; no surety bond is filed as part of the license itself.

What does the bond cover?

Surety bonds protect the obligee, not the principal. If you fail to meet the obligation the bond guarantees, the surety pays the claim and recovers from you.

Is a surety bond the same as insurance?

No. Insurance protects you. A surety bond protects whoever required the bond. You repay the surety for any claim they pay.