The Hawaii Contractors License Board determines, on a case-by-case basis, which residential or commercial contractors must furnish a contractor license bond as a condition for licensing. When a Hawaii contractor license bond is required, the minimum bond amount is $5,000, but the Board may require a higher amount. The bond will expire in two years when the contractor’s license expires and must be renewed at the same time.
Hawaii Contractor License Bond
Need a contractor license bond to meet agency requirements and keep credentials active in Hawaii? Surety Bonds Agent helps make the bonding process easier to manage. Apply online for fast support.
Contact Us for a Free Construction Bond Quote
It’s easy with our simple 3-step process:
- Apply Online
- Get Quote
- Receive Bond
about bond type
What Is a Contractor License Bond?
This type of license and permit surety bond protects against financial loss for the state and parties that enter into contracts with a contractor licensed in Hawaii. The bond requires contractors to operate in compliance with Chapter 444 of the Hawaii Revised Statutes.
Who Needs One?
How Does a Contractor License Bond Work?
Special terms are used to refer to the three parties to a Hawaii contractor license bond:
- The “obligee” requiring the bond is the Hawaii Contractors License Board.
- The “principal” is the contractor purchasing the bond.
- And the “surety” is the bond’s guarantor.
The bond is legally binding on all three parties.
If the principal violates the terms of the surety bond agreement, causing he obligee, project owner, or other party a financial loss, the injured party can file a claim against the bond. If the surety’s investigation finds the claim to be valid, the principal is legally obligated to pay it. Unless the principal has the funds to pay a claim right away, the surety will pay it initially and give the principal a certain amount of time in which to repay that debt. Failing to repay it can result in the surety taking legal action to recover the funds, as the surety has no legal liability for claims.
costs
How Much Does It Cost?
Hawaii contractor license bonds are sold for an annual premium that is the product of multiplying the required bond amount set by the obligee and the premium rate assigned to the principal by the surety. The premium rate is established through an underwriting assessment of the risk to the surety—specifically, the risk of not being repaid for claims paid by the surety on the principal’s behalf.
The surety’s underwriters rely on the principal’s personal credit score as the primary measure of the risk of non-repayment. A principal with a high credit score is considered to present little risk to the surety and will be assigned a low premium rate, typically somewhere between one and four percent. A low credit score, however, suggests a higher risk level, which warrants a significantly higher premium rate.
A high credit score indicates that the risk of the surety not being repaid for claims paid on the principal’s behalf is low, so the premium rate also will be low, perhaps even lower than 1%. A principal with a lower credit score suggests a higher risk level, which results in a higher premium rate.
location search
Choose Bond by States
We proudly serve all 50 states, offering a full range of surety bonds. To buy surety bonds online:
- Choose your state
- Choose the bond type you need
- Apply online to request a free quote
There’s no obligation, and we can often help you get bonded in 24 hours or less.
Alabama
Alaska
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
Florida
Georgia
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire
New Jersey
New Mexico
New York
North Carolina
North Dakota
Oklahoma
Oregon
Pennsylvania
Rhode Island
South Carolina
South Dakota
Tennessee
Texas
Utah
Vermont
Virginia
Washington
District Of Columbia
West Virginia
Wisconsin
Wyoming
Ohio
step by step guide
How Do Hawaii Contractor License Bonds Work?
-
Choose Your Bond Type
Select the bond you need — commercial, contract, or any specialized bond. We help you find exactly what is required in your state.
-
Submit a Quick Application
Complete a short online form. It only takes a few minutes, with no extra paperwork or long verification steps.
-
Get Approved & Receive Your Bond
Get fast approval and receive your bond instantly by email. Your document is ready to use right away.
main reasons
Why Work With Us?
Easy Application Process
Simply fill out our convenient online application form to get started.
Extensive Carrier Network
We work with a wide range of carriers to provide many options to our clients.
Competitive Rates
As an independent agency, we can leverage our carrier network to find the most competitive rates for the bonds you need.
Quick Turnarounds
We work to get you bonded as quickly as possible, often in 24 hours or less.
Exceptional Service
Our experienced surety bond agents provide personalized assistance to help you understand your bonding requirements and options.
who we work with
Our Insurance Company Partners Nationwide
Testimonials
What our customers say about us
Request a Quote
Request an online quote today! Or speak with one of our knowledgeable surety bond agents about the commercial bonds you are interested in.