Washington Contractor License Bond ($30,000 / $15,000)

What Is the Washington Contractor License Bond Under RCW 18.27.040?

It’s a continuous surety bond L&I requires before it registers a general or specialty contractor.

• Purpose: Backs claims against the contractor. Homeowners have 2 years from substantial completion or abandonment to sue on the bond, and other claimants have 1 year.
• Who Needs It: Every general and specialty contractor registering under chapter 18.27 RCW.
• Regulating Body: Washington State Department of Labor & Industries (L&I), Contractor Registration Program.
• Required Amount: $30,000 general and $15,000 specialty since July 1, 2024, per RCW 18.27.040. The amount rises to as much as $90,000 or $45,000 with residential judgments.
• Premium Rates: Start at $100 — typically 1%–3% of the bond amount per year.
• Disclaimer: Requirements, timelines, and bond costs listed on this page are accurate as of October 19, 2026, but are subject to change by the Washington licensing authority or surety underwriters — for current rates and requirements, call 844-806-2663.

What Are the L&I Requirements for a Washington Contractor License Bond?

L&I requires a continuous bond, liability insurance and a $150.20 fee before it issues a 2-year registration. Insurance means $200,000 public liability plus $50,000 property damage, or a $250,000 combined single limit.

• Regulator — The Washington State Department of Labor & Industries (L&I) registers contractors under chapter 18.27 RCW through its Contractor Registration Program.
• Bond amount — Set by registration type: $30,000 general or $15,000 specialty. It rises to $40,000 / $60,000 / $90,000 general or $20,000 / $30,000 / $45,000 specialty with 1, 2 or 3 or more residential final judgments in five years under WAC 296-200A-030.
• Renewal — The bond is continuous with no fixed term, and registration renews every 2 years for $150.20. Cancellation suspends the registration automatically until a new bond is filed and approved under RCW 18.27.060.
• Filing — The surety executes L&I’s Continuous Contractor’s Surety Bond form, and the original must reach L&I before its filing date. An assigned savings account on L&I’s Assignment of Account form can replace the bond.
• Unique rule — Cities and counties can’t require their own contractor registrations, licenses or bonds under RCW 18.27.130.

Which Contractors Need a $30,000 or $15,000 Washington Contractor License Bond?

Anyone who builds, alters, repairs, improves or demolishes structures as an independent business needs the bond, even if they only bid.

• General contractors using more than one building trade ($30,000)
• Specialty contractors, including single-trade businesses and most subcontractors ($15,000)
• Owners who build to sell without living in or using the property for more than a year
• Electrical and telecommunications contractors, under separate L&I licenses with $4,000 bonds
• Plumbing contractors licensed under chapter 18.106 RCW, who file a $6,000 bond instead of registering
• Fire protection sprinkler contractors, licensed by the state director of fire protection ($10,000, or $6,000 for NFPA 13-D/13-R only)
• Contractors working in city rights-of-way: Tacoma ($15,000), Spokane (minimum $10,000), Vancouver (1.5 times the estimated cost)

Casual work under $500 per project, owners working on their own homes and wage-only employees are exempt. Public projects also need performance and payment bonds for the full contract price under chapter 39.08 RCW. Compare other states on our contractor license bonds page, or start at the Surety Bonds Agent home page.