Why Contractors in Florida and Washington Need Commercial Bonds
Introduction: Bonds as a Contractor’s Passport to Work
In construction, insurance protects your business from financial loss — but bonds protect your reputation and open the door to projects. In both Central Florida and Washington State, contractors are often required by law or contract to obtain commercial bonds before they can legally operate.
At Insurance Alliance, we specialize in helping contractors secure the right bonds to stay compliant, win contracts, and build trust with clients.
What Are Contractor Bonds?
A contractor bond is a type of surety bond that guarantees you will fulfill your obligations to clients, government agencies, or project owners. If you fail, the bond compensates the other party.
Types of Contractor Bonds
- License Bonds – Required to obtain or maintain a contractor license.
- Bid Bonds – Guarantee that if you win a bid, you’ll honor the terms.
- Performance Bonds – Guarantee that the project will be completed according to the contract.
- Payment Bonds – Ensure subcontractors and suppliers are paid.
Florida Contractor Bond Requirements
- Many municipal projects in Central Florida require bid and performance bonds.
- Contractors applying for certain licenses may need a bond as part of compliance.
- Example: A roofing contractor in Orlando may need a license bond before starting work.
Washington Contractor Bond Requirements
- The state mandates a $12,000 bond for general contractors and $6,000 for specialty contractors.
- Without this bond, you cannot legally operate in Washington.
- Many public projects also require bid and performance bonds.
Why Bonds and Insurance Work Together
- Bonds build trust: Clients see that you’re financially accountable.
- Insurance protects you: Liability coverage ensures your business doesn’t collapse under claims.
- Combined, they create credibility: Contractors with both are far more competitive in Florida and Washington.
Insurance Alliance Advantage
We help contractors bundle bonds with liability coverage for convenience and cost savings. Whether you’re building in Celebration, FL, or Spokane, WA, we make sure you meet legal requirements and client expectations.
