Contractor License Bond in Utah
$15,000 to $50,000 bond. Plain-English requirements, filing process, and what you should expect to pay.
What this bond requires in Utah
Under Utah Code § 58-55-306 and Utah Admin. Code R156-55a-602, every Utah contractor license applicant must file a license bond with DOPL issued by a surety listed in U.S. Treasury Circular 570. The minimum bond is $50,000 for the E100 (general engineering) and B100 (general building) classifications, $25,000 for the R100 (residential and small commercial) classification, and $15,000 for all other classifications. DOPL may increase the bond amount based on the applicant or licensee financial, criminal, or disciplinary history, and may also accept a lower bond on clear and convincing evidence that the standard amount exceeds what is necessary to protect the public.
Who requires it
The contractor license bond is required by the Utah Division of Professional Licensing (DOPL), Department of Commerce under Utah Code § 58-55-306 (Construction Trades Licensing Act); Utah Admin. Code R156-55a-602.
How to file in Utah
Applicants apply to DOPL through the Utah Department of Commerce online portal, pass the required business/law and trade exams, submit proof of general liability insurance and workers compensation, and file the original surety bond at the amount set by R156-55a-602 for their classification. Licenses are issued for a two-year term and must be renewed with DOPL; the bond must remain continuously in force during the license period.
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Common questions
Is a contractor license bond required in Utah?
Yes. Utah requires contractor license bonds issued by an admitted surety. The required amount is $15,000 to $50,000.
How much is the bond in Utah?
The bond amount is $15,000 to $50,000. Your annual premium is a small percentage of that, based on credit and experience.
Who requires the bond?
The bond is required by the Utah Division of Professional Licensing (DOPL), Department of Commerce.
How is the bond filed?
Applicants apply to DOPL through the Utah Department of Commerce online portal, pass the required business/law and trade exams, submit proof of general liability insurance and workers compensation, and file the original surety bond at the amount set by R156-55a-602 for their classification. Licenses are issued for a two-year term and must be renewed with DOPL; the bond must remain continuously in force during the license period.
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.
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Same bond, other states
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