Texas
Contractor Bonds

What is a Texas contractor license bond?

Texas contractor bonds are often required before a license or permit can be issued to a contractor. All contractor bonds in Texas are required by the state, cities, counties, or municipalities, meaning contractors must obtain a specific surety bond to qualify for licensing or the necessary permit.

You can find more information on state of Texas-required license and permit bonds here: https://www.tdi.texas.gov/commercial/pcbond.html#permit 

How much do Texas contractor bonds cost?

The cost of your Texas contractor bond will vary based on who requires it — city, county, or state — and the bond amount required. Some TX bonds can be issued instantly online for a set premium to all applicants. However, bonds deemed riskier will often be subject to underwriting consideration, meaning a surety underwriter will review the bond’s amount, as well as the applicant’s personal history, financial history, and credit history, before determining whether — and at what price — a bond can be issued. 

Find out more about what makes certain bonds riskier - and therefore require underwriting - and how you can best set yourself up for the underwriting process on our Definitive Guide to Surety Underwriting.

Think you may need a performance, payment, or bid bond?

Learn more about these bond requirements on our contractor bond cost page. See more information on other surety bonds required on the Texas Department of Insurance Bond Resources Page.

Who qualifies as a Texas electrical contractor?

Electrical contractors are defined by the state of Texas as anyone who will engage in designing, installing, erecting, repairing, or altering electrical wires or conductors used for light, heat, power, or signaling purposes. However, this work can also include installation or repair of ducts, raceways, or other conduits; reception or protection of wires; and the installation or repair of electrical machinery, apparatus, or systems used for light, heat, power, or signaling.

Before you are eligible to apply for a Texas electrical contractor license, a Master Electrician must be employed in the business. However, this person may also be the owner of the business. He or she can only be assigned to a single electrical contractor unless he or she owns more than 50% of the business.

If your master electrician changes, submit an application by mail via Electrical Contractor Notice of Change and Duplicate License Request (PDF).

How to get a Texas electrical contractor license

Before applying for a TX electrical contractor license, you are required to obtain the following insurance coverage:

• Liability Insurance Coverage

  • Minimum $300,000 per occurrence (combined for property damage and bodily injury)

  • Minimum $600,000 aggregate (total amount the policy will pay for property damage and bodily injury coverage)

  • Minimum $300,000 aggregate for products and completed operation

    • Proof of insurance can be submitted via the Electrical Contractor Certificate of Insurance Form (PDF) included on your license application

• Worker’s Compensation Insurance

  • Proof of having obtained workers' compensation insurance

  • A certificate of authority to self-insure

  • A statement that you have elected not to obtain workers' compensation insurance pursuant to Subchapter A, Chapter 406, Labor Code

    • File this form with the Texas Department of Insurance if you do not obtain workers’ comp: Employer Notice of No Coverage or Termination of Coverage Form (DWC Form-005).

      • Only one form of workers’ compensation insurance is required with the license application

• Submit an Electrical Contractor or Electrical Sign Contractor License Application (PDF)

  • Include the $110 application fee to the Texas Department of Licensing and Regulation, P.O. Box 12157, Austin, TX 78711-2157

  • All insurance documentation must be submitted along with the license application

Electrical contractor licenses are valid for one year from the date of issuance and must be renewed annually online.

How to renew your air conditioning and refrigeration contractor’s license

• Renewals can be completed online

• Complete eight hours of approved continuing education coursework each year

  • See the Continuing Education Requirements page for further information

• Submit the renewal fee of $65

• Conclude your Class or Endorsement

• Complete a licensing examination

An air conditioning and refrigeration contractor installs, repairs, or maintains systems dealing with air conditioning, refrigeration, and heating. Performing unlicensed work can be hazardous and against the law. Be sure to obtain a license before beginning any work!

The best way to determine whether a contractor bond is required is to contact your local government entity.

Examples of city-specific Texas contractor bonds

City of Canyon Contractor Bond Requirements

A $10,000 contractor bond is required of pool, hot tub and spa; landscape irrigation; and sign contractors. These $10,000 contractor bonds can be purchased instantly online for a $100 premium.

A general contractor bond and roofing contractor bond is required in Canyon in the amount of $20,000. These bonds can be issued instantly online for $100 through ContractorBonds.com.

City of Beaumont Contractor Bond Requirements

Roofing contractors are required by the Beaumont Building Codes Department to obtain a $15,000 contractor bond. This bond can be bought instantly online for a $150 premium.

Building contractors in Beaumont must obtain a $25,000 contractor bond. This bond costs $250 and can be purchased online through the ContractorBonds.com secure checkout.

City of Mesquite General Contractor License Bond

The city of Mesquite, Mesquite Municipality Center, requires general contractors to post a $5,000 contractor bond before they can become licensed or begin work in the city. This bond can be issued instantly online for a $100 to all applicants regardless of their financial and credit history.

Don't see the bond you need here?

Other cities in Texas also hold contractor bond requirements. Check out our extensive list of contractor bonds in Texas below to find the bond you need!

The best way to determine if you require a contractor bond is to contact your local government entity.