Rates start at $250 a year for a $25,000 LARA CSCL bond. Contractors with strong credit typically pay 1% to 5% of the bond amount. Call us — we quote it same day.
Michigan Contractor License Bond
A Michigan contractor license bond isn’t a blanket requirement — the state does not impose one statewide bond on every contractor, and bonding rules are set by specific agencies and local jurisdictions instead. Michigan Department of Licensing and Regulatory Affairs, Corporations, Securities & Commercial Licensing Bureau (LARA CSCL) requires security alarm contractor agencies to file a $25,000 surety bond, or an equivalent liability insurance policy, while separate bonds apply to state highway right-of-way work and certain city permits.
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It’s easy with our simple 3-step process:
- Apply Online
- Get Quote
- Receive Bond
Bond Overview
- Purpose: Guarantees compliance with licensing law and covers damages caused by a licensee’s work
- Who Needs It: Security alarm contractor agencies, state highway right-of-way contractors, certain city-permitted trades
- Regulating Body: LARA CSCL (security alarm agencies) / The Michigan Department of Transportation (MDOT) (right-of-way permits) / local jurisdictions (city permits)
- Required Amount: $25,000 (LARA CSCL security alarm bond, or a liability insurance policy covering $25,000 property damage / $100,000–$200,000 injury); set per permit by MDOT based on project scope (residential driveways exempt); $1,000–$2,000 (local permits)
- Premium Rates: Start at $250 per year — typically 1%–5% of the bond amount
Disclaimer: Requirements, timelines, and bond costs listed on this page are accurate as of September 3, 2026, but are subject to change by Michigan licensing authorities or surety underwriters — for current rates and requirements, call 866-362-6637.
Who Needs a Contractor License Bond in Michigan?
Bonding in Michigan applies to a narrow set of contractor types, not the whole trade.
- Security alarm contractor agencies licensed through LARA CSCL
- Commercial driveway contractors and utilities working in state highway right-of-way under an MDOT permit
- Sidewalk, cement, and asphalt contractors permitted by cities including Flint, Warren, and St. Clair Shores
- Marine and curb-cutting contractors in jurisdictions with a local trade-bond ordinance
Residential builders (licensed through LARA’s Bureau of Construction Codes) as well as electricians, plumbers, and mechanical contractors licensed through the same bureau don’t file a bond with their state license. Get bonded only if a city or a specific project requires it. LARA CSCL bonds other licensed businesses too, including security guard agencies and collection agencies, but those fall outside the contractor license category.
costs
How Much Does a MI Contractor License Bond Cost?
Michigan contractor license bonds start at $250 per year. Cost depends on the bond type, the required amount, and your credit score. A $25,000 LARA CSCL security alarm bond runs $250 to $1,250 a year for most applicants. Smaller municipal bonds cost less and often carry a flat minimum premium. Contractors with weaker credit pay more, sometimes 5% to 10% of the bond amount instead of the standard range.
| Bond Type | Bond Amount | Typical Annual Cost |
|---|---|---|
| Security Alarm Contractor Agency Bond (LARA CSCL) | $25,000 | $250–$1,250 |
| MDOT Right-of-Way Permit Bond | Set per permit by MDOT based on project scope (residential driveways exempt) | 1%–5% of bond amount |
| City of Flint Sidewalk Builders Bond | $2,000 | $100–$150 |
| City of Warren Sidewalk Contractors Bond | $1,500 | $100–$125 |
| City of St. Clair Shores Asphalt/Concrete/Curb Cutter Bond | $1,000 | $100 (minimum premium) |
LARA and MDOT Requirements for a Contractor License Bond in Michigan
Each authority sets its own bond terms for the license or permit it issues:
- Michigan Department of Licensing and Regulatory Affairs, Corporations, Securities & Commercial Licensing Bureau (LARA CSCL) — regulates security alarm contractor agencies and sets the $25,000 bond amount, or an equivalent liability insurance policy (michigan.gov/lara)
- Bond amount — fixed at $25,000 for LARA CSCL security alarm agencies (or equivalent insurance); MDOT sets the right-of-way bond per permit, at its discretion, based on the estimated restoration cost of the right-of-way work — residential driveway permits are exempt, commercial driveway and other permits require one; set by city ordinance for local trade bonds
- Renewal — the security alarm agency license is valid for 2 years, and LARA CSCL requires the bond or insurance to stay in force for that full term; letting coverage lapse puts the license at risk of revocation
- Filing — the surety issues the bond, and you file the original with LARA CSCL or the permitting city, or submit it electronically through the MDOT Permit Gateway (MPG) for right-of-way permits
- Michigan Department of Transportation (MDOT) — bonds right-of-way construction permits and accepts filings only through the MDOT Permit Gateway (MPG) (michigan.gov/mdot)
step by step guide
How to Get a Michigan Contractor License Bond
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Select Your Required Coverage
Choose the exact bond required by your state or local licensing board.
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Fill Out the Short Application
Submit your information through our secure, fast online form.
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Instant Approval & Bond Delivery
Get approved quickly and receive your official bond document via email.
Turnaround runs same-day to next-day for clean credit and complete paperwork; missing documents or weak credit add a few days. Full process looks like this:
- We help to confirm which authority — LARA CSCL, MDOT, or a city — actually requires your bond.
- Apply with your license or permit application number.
- You pay the premium and receive your bond the same business day in most cases.
- File the original bond with the regulating agency, or submit it electronically through the MDOT Permit Gateway (MPG) for right-of-way permits, before your license or permit is issued.
Not sure if your project needs one? Our surety bonds experts will compare related bond types before you apply.
faq
FAQ
How much does a Michigan security alarm contractor bond cost?
Can a contractor with bad credit get a Michigan contractor bond?
Yes. Rates run 5% to 15% for lower credit scores instead of the standard 1% to 5%. Call us — we place these bonds regularly.
What happens if a Michigan contractor bond lapses?
LARA CSCL can revoke the security alarm agency license if bond or insurance coverage lapses during the 2-year term. The agency risks losing its right to operate until coverage is restored. Call us before your renewal date — we track it for you.
Does Michigan require a bond for general contractors already licensed by LARA?
No. LARA’s Bureau of Construction Codes licenses residential builders and maintenance and alteration contractors without a state bond. Some cities require one for permitted work like sidewalks or concrete — call us and we’ll confirm your city’s rule before you apply.
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main reasons
Why Michigan Contractors Trust Us
A Convenient Application Process
Starting your bond request is simple with online and phone application options designed to make the process more straightforward.
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As an independent agency, we use our carrier relationships to find competitive rates and terms based on your profile and bond requirements.
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Many bonds are issued within 24 hours, allowing clients to continue with projects, licensing steps, or court requirements with fewer delays.
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With 30 years of combined experience, our licensed agents provide guidance on bond requirements and help match clients with appropriate bond solutions.
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