Who Needs a South Carolina Residential Builder Surety Bond?

Generally, if South Carolina requires you to have a license, you will also be required to purchase a Surety Bond.  Here are some licenses that require bonds in SC.

  • Residential Specialty Contractor Electrical license – The applicant (not a company or business) must provide an original Surety Bond in the amount of $10,000, with the attached power of attorney.
  • Residential Specialty Contractor Heating and Air Conditioning license – The applicant (not a company or business) must provide an original Surety Bond in the amount of $10,000, with the attached power of attorney.
  • Residential Specialty Contractor Plumbing license – The applicant (not a company or business) must provide an original Surety Bond in the amount of $10,000, with the attached power of attorney.
  • Residential Home Builders license – The applicant (not a company or business) must provide an original Surety Bond in the amount of $15,000, with the attached power of attorney.
  • Other Specialty Contractor licenses – Such as vinyl and aluminum siding installers, roofers, floor covering installers, insulation installers, drywall installers, masons, carpenters, stucco installers, solar panel installers, and painters/wall paper hangers.  The applicant (not a company or business) must provide an original Surety Bond in the amount of $5,000, with the attached power of attorney.

In addition to a bond, South Carolina has additional requirements to obtain a Contractor or Home Builder license.  You may find more information here from SCLLR.

 

What is a Contractor Bond or a Residential Builder Bond?

In short, a Contractor Bond is a licensure requirement mandated by the South Carolina Residential Builders Commission.  These bonds are a type of Surety Bond needed to ensure that the applicant will perform the acts required by the state law and the rules of the SC Residential Builders Commission.

For more information about License Bonds or other types of bonds, visit our Bonds page here.

 

How do I get a Residential Builder or Residential Specialty Contractor License Bond?

Most independent property and casualty insurance agencies have access to sell the bonds.  Davis Insurance Associates can help in most cases; and there is not too much to it!

  1. Apply for the bond – Contact our office to submit an application.
  2. Underwriting – An agent will ask you some important questions needed for the bond.  This will likely include your financial history, business performance history, and your credit score.
  3. Bond issuance – Once approved by the underwriting process, we can typically issue the bond immediately and send it to you.

 

 ADDITIONAL NOTES:

  • The surety bond should be issued by a South Carolina authorized surety.
  • South Carolina Residential Builders Commission, State of South Carolina will be the Obligee.
  • If the licensee commits a violation, the Obligee will be eligible to file for a bond claim.
  • The licensee must obey all rules and regulations set by the state or municipality.

 

In addition to the state required bonds outlined above, several cities and counties require certain contractors to post surety bonds.  It is best to contact the state and local municipality you will working in to make sure you have all of the required bonds and licenses.

 

Bond requirements were taken from the SCLLR (South Carolina Labor Licensing Regulation) as of January 2021.  Regulations may have changed.  This information is general and does not replace any requirements by the state, the bonding company, a bond, or our agency.

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We understand that every restaurant has unique risks and needs. Our team at Davis Insurance Associates takes the time to learn about your business so we can provide the best coverage options available. As an independent agency, we shop multiple carriers to find policies that offer great coverage at competitive prices.

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