Nevada Contractors License Surety Bonds are required for contractor licensing in Nevada and are administered by the Nevada State Contractors Board. The Board determines the required bond amount at the time of license approval, and the required bond amount may range from $1,000 to $500,000 depending on the contractor’s license type, monetary limit, financial responsibility, experience, and character.
A1SuretyBonds.com offers Nevada Contractors License Surety Bonds on an instant issue basis up to $50,000. Instant issue means eligible applicants can secure the bond without underwriting, without a traditional credit review delay, and without a required indemnity agreement. The annual premium is typically 0.5%–1% per year of the required bond amount ($100 minimum).
APPLY for your NV Contractors License Bond now!
Nevada Contractors License Bond Quick Facts
| Requirement | Details |
|---|---|
| Bond Name | Nevada Contractors License Surety Bond |
| Obligee | State of Nevada / Nevada State Contractors Board |
| Governing Statute | NRS 624.270 |
| Bond Amount | $1,000 to $500,000, as determined by the Board |
| Cost Through A1SuretyBonds.com | 0.5%–1% per year of the required bond amount ($100 Minimum) |
| Instant Issue | Available up to $50,000 |
| Underwriting Required? | No underwriting for eligible bonds up to $50,000 |
| Indemnity Required? | No required indemnity agreement for eligible bonds up to $50,000 |
| Cancellation Notice | Surety may cancel with 60 days’ notice to the Board and contractor |
| Continuous Bond Requirement | The bond must remain continuously in force with no lapse in coverage |
Who Needs the Nevada Contractors License Surety Bond
Contractors applying for or maintaining a Nevada contractor license generally must file a license bond or establish an approved cash deposit with the Nevada State Contractors Board. Nevada law requires evidence of the bond or deposit before license issuance and renewal unless the contractor has been relieved of the requirement under applicable law.
The Nevada Contractors License Bond applies to contractors seeking authority to operate in Nevada under Chapter 624 of the Nevada Revised Statutes. This includes many general contractors, specialty contractors, subcontractors, and licensed construction businesses subject to the Nevada State Contractors Board.
A contractor should expect to need the bond if:
- The Nevada State Contractors Board approves the license application and assigns a bond amount.
- The contractor is renewing an existing license and must show the bond remains in full force.
- The Board increases or reinstates a bond requirement based on financial responsibility, complaints, wage claims, disciplinary history, or other statutory factors.
- The contractor performs work in Nevada and must maintain active licensing compliance.
Nevada does not use a one-size-fits-all contractor bond amount. The Board determines the amount individually.
What Is the Nevada Contractors License Surety Bond
A Nevada Contractors License Surety Bond is a license bond required by the Nevada State Contractors Board. The bond guarantees that the licensed contractor will comply with Nevada contractor licensing law and provides a financial remedy for certain protected persons harmed by covered contractor conduct.
A Nevada Contractors License Bond is a three-party surety obligation:
| Party | Role |
| Principal | The contractor required to obtain the bond |
| Obligee | The State of Nevada / Nevada State Contractors Board |
| Surety | The company issuing the bond |
| Protected Parties | Employees, suppliers, materialmen, and persons injured by certain unlawful acts or omissions |
The bond is not insurance for the contractor. It protects eligible claimants and the public. If the surety pays a valid claim, the contractor is generally responsible for reimbursing the surety.
What Does This Bond Guarantee
The bond guarantees that the contractor will comply with Nevada contractor licensing obligations and provides financial protection for certain persons identified under Nevada law, including property owners, employees, suppliers, materialmen, and persons injured by certain unlawful acts or omissions committed in the performance of a contract.
The bond may respond to covered claims involving:
- Failure to perform a construction contract
- Failure to remove liens filed against the improved property
- Labor performed by an employee on or about the construction site
- Materials or equipment furnished by suppliers or materialmen
- Injury caused by an unlawful act or omission of the contractor in the performance of a contract
The bond does not replace general liability insurance, workers’ compensation coverage, performance bonds, payment bonds, or project-specific contract bonds.
Why This Bond Is Required
Nevada requires contractor license bonds to support licensing compliance, financial responsibility, and public protection. The bond gives certain protected parties a financial remedy when a licensed contractor causes a covered loss under Chapter 624 of the Nevada Revised Statutes.
The Nevada State Contractors Board uses the bond requirement as part of its licensing oversight. The requirement helps ensure that contractors meet financial responsibility standards before receiving or renewing a license.
The bond exists to protect:
- The public
- Residential and commercial property owners
- Employees of the contractor
- Suppliers and materialmen
- Certain persons injured by unlawful contractor conduct
- The integrity of Nevada’s contractor licensing system
Who Does the Bond Protect
Nevada law provides that the bond or cash deposit is in favor of the State of Nevada for the benefit of specific protected persons. These include owners damaged by failure to perform or remove liens, employees, suppliers, materialmen, and persons injured by certain unlawful acts or omissions of the contractor.
The bond primarily protects third parties—not the contractor. A common misunderstanding is that the bond works like insurance for the licensed contractor. It does not. The contractor pays the bond premium, but the bond exists for the benefit of eligible claimants and the licensing authority.
Statutory and Regulatory Authority
NRS 624.270 requires an applicant to file a surety bond acceptable to the Nevada State Contractors Board or establish a cash deposit before the Board issues a contractor’s license. The statute also requires renewal applicants to show the bond or cash deposit remains in full force unless relief has been granted.
Key Nevada authorities include:
| Authority | Subject |
| NRS 624.270 | Bond or cash deposit requirements, amount, conditions, renewal evidence, possible relief |
| NRS 624.273 | Persons protected by the bond, actions against the bond, claim priorities |
| NRS 624.275 | Notice of paid claims, bond cancellation, replacement requirements, suspension or revocation |
| NAC Chapter 624 | Administrative rules governing Nevada contractors |
| Nevada State Contractors Board | Licensing agency and bond administrator |
NRS 624.270 states that the required bond or cash deposit must be fixed by the Board with reference to the contractor’s financial and professional responsibility and the magnitude of the contractor’s operations. The amount must be at least $1,000 and not more than $500,000.
Licensing Agency and Obligee Information
The Nevada State Contractors Board requires the bond as part of contractor licensing. The bond is filed in favor of the State of Nevada and is administered as part of the Board’s licensing and compliance process.
The Nevada State Contractors Board is the licensing authority for contractors in Nevada. The Board determines the required bond amount, approves licensing, reviews renewal compliance, and receives notices involving bond cancellation or paid bond claims.
Surety bonds must be written by a surety company authorized to transact business in Nevada and must be executed on the Board’s required form. The Nevada State Contractors Board also states that the surety company’s long-term obligations must be rated “A” or better by A.M. Best.
Bond Amount Requirements
The Nevada Contractors License Bond amount ranges from $1,000 to $500,000. The Nevada State Contractors Board determines the amount when the license is approved, based on the license type, monetary limit, financial responsibility, experience, and character of the applicant.
Unlike many state contractor license bonds, Nevada’s bond amount is individualized. One contractor may be required to post a $10,000 bond while another may be required to post $50,000, $100,000, or more.
The Board considers:
- Type of contractor classification requested
- Monetary limit granted
- Past, present, or future financial responsibility
- Experience
- Character of the applicant
- Magnitude of operations
- Renewal or disciplinary history
- Other evidence presented to the Board
How Nevada Determines Your Required Bond Amount
Nevada determines the bond amount based on the contractor’s financial and professional responsibility, the magnitude of operations, license classification, monetary limit, experience, and character. The Board fixes the required amount at license approval and may increase or reduce the bond amount under certain circumstances.
The bond amount is not chosen by the contractor or the surety agency. The applicant applies for licensing, the Board reviews the application, and the Board then notifies the applicant of the required bond amount.
Bond Waiver Requirements
Under NRS 624.270, after a licensee has acted as a licensed contractor in Nevada for at least five consecutive years, the Board may relieve the licensee of the requirement to file a bond or establish a cash deposit if supporting evidence is presented. The Board may later require a new bond or deposit.
Bond relief is not automatic. Contractors should not assume they are exempt simply because they have been licensed for several years. The Board must grant relief, and the Board may later reinstate the requirement based on evidence, wage claim notifications, valid complaints, or other statutory triggers.
For most contractors, a surety bond is more efficient than tying up the full cash deposit amount.
Requirements for New Applicants
A new applicant must wait for the Nevada State Contractors Board to approve the license application and assign the required bond amount. After approval, the applicant must file a surety bond or establish a cash deposit in the amount fixed by the Board before license issuance.
New applicants should have:
- Legal business name
- Contractor license application information
- Nevada license classification
- Required bond amount assigned by the Board
- Principal name and signature authority
- Surety bond form issued by an authorized surety
- Payment for the annual premium
A1SuretyBonds.com can issue Nevada Contractors License Surety Bonds up to $50,000 instantly, with no underwriting and no required indemnity agreement for eligible applicants. For bonds over $50,000, a credit report will be reviewed and may require business financial statements.
Requirements for Existing Licensees
Existing Nevada contractors must maintain the required bond in full force for license renewal and ongoing compliance. Failure to maintain the bond can cause the Board to deny, revoke, suspend, or refuse to renew the license.
Existing contractors should review bond compliance whenever:
- Renewing a license
- Increasing a monetary limit
- Changing license classification
- Replacing a surety bond
- Receiving a notice of cancellation
- Receiving a notice involving a paid claim
- Seeking relief from the bond requirement
- Expanding operations in Nevada
How Much Does the Nevada Contractors License Surety Bond Cost
Through A1SuretyBonds.com, the Nevada Contractors License Surety Bond generally costs 0.5%–1% per year of the required bond amount (minimum premium is $100). Bonds up to $50,000 are instant issue, meaning no underwriting and no required indemnity agreement for eligible applicants.
APPLY for your NV Contractors License Bond now!
The premium is the amount the contractor pays to purchase the bond. The bond amount is the maximum penal sum required by the Nevada State Contractors Board. These are not the same thing.
| Required BondAmount | Estimated Annual Cost at 0.5% | Estimated Annual Cost at 1% |
| $1,000 | $100 | $100 |
| $5,000 | $100 | $100 |
| $10,000 | $100 | $100 |
| $25,000 | $125 | $250 |
| $50,000 | $250 | $500 |
| $100,000 | $500 | $1,000 |
| $250,000 | $1,250 | $2,500 |
| $500,000 | $2,500 | $5,000 |
Minimum premiums may apply depending on the surety program and bond term.
Instant Issue Nevada Contractors License Bonds Up to $50,000
Yes. Nevada Contractors License Surety Bonds are instant issue through A1SuretyBonds.com up to $50,000. Instant issue means eligible applicants can obtain the bond without underwriting, without financial statement review, and without a required indemnity agreement.
This is a major advantage for contractors who need to satisfy Nevada State Contractors Board requirements quickly. Once the Board assigns the required bond amount, eligible applicants can purchase the bond online and move forward with licensing compliance.
What Instant Issue Means
Instant issue means the bond can be approved and issued automatically for eligible applicants without traditional underwriting. For Nevada Contractors License Surety Bonds up to $50,000 through A1SuretyBonds.com, instant issue means no underwriting and no required indemnity agreement.
Instant issue is especially useful for:
- New license applicants
- Small and mid-sized contractors
- Contractors with bond requirements of $50,000 or less
- Applicants who want to avoid underwriting delays
- Contractors who do not want to complete a lengthy indemnity package
No Underwriting Required for Eligible Bonds Up to $50,000
Yes. Eligible Nevada Contractors License Surety Bonds up to $50,000 are available through A1SuretyBonds.com with no underwriting. That means no extended financial review, no manual underwriting delay, and no need to provide business financial statements for eligible instant issue bonds.
For bond amounts above $50,000, underwriting is required depending on the surety market, the bond amount, the contractor’s financial profile, and the surety’s requirements.
No Indemnity Agreement Required for Eligible Bonds Up to $50,000
For eligible Nevada Contractors License Surety Bonds up to $50,000 issued through A1SuretyBonds.com, no required indemnity agreement is needed. Bonds above $50,000 may require underwriting, additional documentation, and indemnity depending on the surety company and risk profile.
Even when no separate indemnity agreement is required, the contractor remains responsible for valid claims paid by the surety. A license bond is still a surety obligation, not insurance for the contractor.
When Underwriting May Be Required
Underwriting may be required when the Nevada State Contractors Board assigns a bond amount above $50,000 or when the surety determines that additional review is necessary. Larger bond amounts may require financial statements, credit information, ownership details, business history, and an indemnity agreement.
Underwriting may evaluate:
- Bond amount.
Contractor experience.
- Business financial condition
- Personal credit
- License history
- Claims history
- Work type and risk
- Monetary limit
- Ownership structure
Underwriting and Approval Process
For bonds that are not instant issue, the surety may review financial strength, credit history, business experience, license classification, claims history, and the required bond amount. The goal is to evaluate whether the contractor can meet licensing obligations and reimburse the surety for valid claims.
| Bond Type | Bond Amount | Underwriting | Indemnity Agreement | Typical Use |
| Instant Issue | Up to $50,000 | Not required for eligible applicants | Not required for eligible applicants | Most standard Nevada contractor license bond needs |
| Underwritten | Above $50,000 | Required | Required | Larger bond requirements or higher-risk profiles |
Factors That Affect Bond Pricing
The primary cost factor is the required bond amount assigned by the Nevada State Contractors Board. Through A1SuretyBonds.com, the annual cost is typically 0.5%–1% (minimum premium $100) of the required bond amount. For bonds above $50,000, underwriting may also affect pricing.
Factors include:
- Required bond amount
- Whether the bond is instant issue
- Contractor license classification
- Monetary limit
- Claims history
- Business financial strength
- Surety company pricing rules
- Bond term and renewal cycle
How to Secure the Nevada Contractors License Surety Bond
First, obtain the required bond amount from the Nevada State Contractors Board. Then apply through A1SuretyBonds.com, provide the contractor and license information, pay the annual premium, and receive the bond for filing. Eligible bonds up to $50,000 are instant issue with no underwriting and no required indemnity agreement.
APPLY for your NV Contractors License Bond now!
Step-by-Step Application Process
- Apply for your Nevada contractor license
- Wait for the Nevada State Contractors Board to assign your required bond amount
- Confirm the exact legal name and license information
- Apply online through A1SuretyBonds.com
- Select the required bond amount
- Pay the annual premium
- Receive the issued bond
- Sign & file the bond with the Nevada State Contractors Board as required
Bond Filing Requirements
The bond must be filed with the Nevada State Contractors Board on the Board’s required form. The Board states that surety bonds must be executed on its form, written by an authorized Nevada surety company, and signed by the proper party for the business structure.
The Board identifies signature requirements based on entity type:
| Business Type | Required Principal Signature |
| Sole Proprietorship | Owner |
| Corporation | Corporate officer |
| Limited Liability Company | Manager or member with managing authority |
| Limited Partnership | General partner |
| Partnership | All partners |
The surety’s attorney-in-fact must sign the bond, and a power of attorney must be attached. The Nevada agent must countersign the bond.
Bond Renewal Requirements
Yes. Nevada requires renewal applicants to provide satisfactory evidence that the surety bond or cash deposit remains in full force unless the applicant has been relieved of the requirement under NRS 624.270.
Contractors should renew before expiration to avoid a lapse. Nevada states that the bond must be continuous in form and that the contractor’s license must have continuous bond coverage with no lapse.
Can the Bond Be Cancelled
Yes. Under NRS 624.275, the surety may cancel the bond by giving 60 days’ notice to the Nevada State Contractors Board and the contractor by certified mail. The contractor must replace the bond or establish an equivalent cash deposit before the cancellation becomes effective to avoid license consequences.
Bond Cancellation Rules
If the Board receives notice that the bond is being cancelled, the Board must notify the contractor that the license will be suspended or revoked unless the contractor furnishes an equivalent bond or establishes an equivalent cash deposit before the cancellation effective date. If the contractor does not comply, the license must be suspended or revoked.
What Happens If a Claim Is Filed
A protected claimant may pursue recovery against the bond for covered damages. Nevada law allows a person claiming against the bond or deposit to bring an action in a court of competent jurisdiction, subject to statutory limits and procedures.
Typical bond claim process:
| Step | What Happens |
| 1. Complaint or Claim | A protected party alleges a covered loss |
| 2. Notice | The surety or Board may receive notice of the claim or court action |
| 3. Investigation | The surety reviews the bond, facts, contract, documents, and statutory coverage |
| 4. Contractor Response | The contractor may be asked for records or defenses |
| 5. Determination | The surety determines whether the claim is valid and covered |
| 6. Payment | The surety may pay a valid claim up to the bond amount |
| 7. Reimbursement | The contractor remains responsible to reimburse the surety for valid amounts paid |
NRS 624.273 states that no action may be commenced on the bond or deposit two years after the commission of the act on which the action is based.
Surety Company Rights After Paying a Claim
A surety bond is not contractor insurance. If the surety pays a valid claim, the contractor is generally responsible for reimbursing the surety. The bond protects claimants; it does not transfer the contractor’s financial responsibility to the surety.
The surety may also notify the Nevada State Contractors Board of claims paid against the bond. NRS 624.275 requires the surety to give prompt notice to the Board of paid claims against a licensed contractor’s bond.
Common Compliance Violations
Common issues include failing to perform contracted work, failing to remove liens, failing to pay labor or suppliers, unlawful acts or omissions during contract performance, bond cancellation, and failure to maintain the required bond or cash deposit.
| Compliance Issue | Why It Matters | Possible Result |
| Failure to maintain bond | Required for licensing compliance | Suspension, revocation, or refusal to renew |
| Unpaid suppliers | Suppliers may be protected claimants | Bond claim or lawsuit |
| Failure to remove liens | Owners may be protected | Bond claim |
| Labor nonpayment | Employee labor claims receive statutory preference | Claim exposure |
| Unlawful act or omission | May trigger statutory claim rights | Bond claim or discipline |
| Operating without proper license | Violates contractor licensing law | Enforcement action |
| Bond cancellation not replaced | Creates licensing lapse | Suspension or revocation |
| Misunderstanding bond vs insurance | Contractor may assume protection does not exist | Financial exposure after paid claim |
Consequences of Operating Without the Bond
Failure to file or maintain the required bond or cash deposit in full force constitutes cause for the Nevada State Contractors Board to deny, revoke, suspend, or refuse to renew a contractor license.
Consequences may include:
- License issuance delay.
- License renewal refusal.
- License suspension.
- License revocation.
- Disciplinary exposure.
- Loss of ability to legally contract in Nevada.
- Increased difficulty obtaining future bonding.
In-State vs Out-of-State Requirements
If an out-of-state contractor is required to obtain a Nevada contractor license, the contractor must satisfy the Nevada State Contractors Board’s bond or cash deposit requirements. The bond requirement is tied to Nevada licensing, not the contractor’s home state.
Out-of-state contractors should not assume that a bond filed in another state satisfies Nevada’s licensing requirement. Nevada requires compliance with Nevada contractor licensing rules.
Difference Between Contractor License Bonds and Performance Bonds
A contractor license bond is required for licensing compliance. A performance bond is generally project-specific and guarantees completion of a particular contract. Nevada law separately recognizes situations where certain contractors may be required to obtain performance bonds for specific residential pool, spa, or residential photovoltaic work.
| Bond Type | Purpose | Who Requires It | Who Is Protected |
| Contractor License Bond | Licensing compliance | Nevada State Contractors Board | Statutorily protected claimants |
| Performance Bond | Completion of a specific contract | Project owner, public agency, or Board in specific cases | Owner of the property/project |
| Payment Bond | Payment of labor/materials on a project | Project owner, public agency, or Board in specific cases | Laborers, subcontractors, suppliers |
Difference Between Contractor License Bonds and Payment Bonds
A contractor license bond is a licensing requirement. A payment bond is usually project-specific and protects persons supplying labor or materials on a particular contract. Nevada law may require certain contractors to obtain payment bonds in specific circumstances, but that does not replace the license bond requirement.
Please check out our page on Bid, Payment & Performance Surety Bonds for more information on establishing a surety line for future Bid, Payment & Performance bond required projects.
Residential Pool and Spa Contractors Consumer Protection Bond Issues
The Nevada State Contractors Board states that residential pool and spa contractors may be required to file an additional consumer protection bond or establish a cash deposit. The amount must be fixed by the Board and must be at least $10,000 and not more than $400,000.
The Board also notes that under certain conditions, residential pool and spa contractors may be required to obtain performance and payment bonds in amounts equal to not less than 50% of the contract amount.
Please check out our page on Nevada Residential Pool and Spa Contractors Consumer Protection Surety Bonds for more information on this bonding requirement.
Nevada Pool and Spa Contractors Performance and Payment Surety Bond
In addition to the standard Contractors License bond and the Consumer Protection Bond required of Pool and Spa Contractors in the State of Nevada, the Contractors License Board may require a 50% Payment and Performance Surety Bond for each contract performed.
Please check out our page on Nevada Pool and Spa Contractors Performance and Payment Surety Bonds for more information on this bonding requirement.
Nevada Contractor License Frequently Misunderstood Rules
Contractors often misunderstand that the Board—not the contractor—sets the bond amount; the premium is not the same as the bond amount; the bond protects eligible claimants, not the contractor; and a surety bond does not replace insurance, performance bonds, payment bonds, or licensing compliance.
Common misconceptions:
- “Every contractor needs the same bond amount.” False.
- “The bond amount is what I pay.” False.
- “The bond protects my business like insurance.” False.
- “A cash deposit is cheaper because there is no premium.” Not necessarily, because it ties up the full required amount.
- “If my surety cancels, I can wait until renewal.” False.
- “Instant issue means the bond has less legal effect.” False.
- “No indemnity means no responsibility for claims.” False.
Apply for the Nevada Contractors License Surety Bond
You can apply online through A1SuretyBonds.com for a Nevada Contractors License Surety Bond. Bonds up to $50,000 are instant issue for eligible applicants, with no underwriting and no required indemnity agreement. Annual cost is generally 0.5%–1% of the required bond amount.
APPLY for your NV Contractors License Bond now!
Before applying, confirm your required bond amount from the Nevada State Contractors Board. Once you know the amount, A1SuretyBonds.com can help issue the bond quickly so you can satisfy your licensing requirement.
Here are some other bonds required in the state of Nevada:
- Other bonds required in the State of Nevada
- Nevada Residential Pool and Spa Contractors Consumer Protection Bond
- Nevada Pool and Spa Contractors Performance and Payment Surety Bond
- Nevada Bid, Payment & Performance Bonds
- Subdivision Bonds (Platt / Off Site Improvements)
Frequently Asked Questions
1. What is a Nevada State Contractors License Surety Bond?
A Nevada State Contractors License Surety Bond is a license bond required by the Nevada State Contractors Board. It guarantees compliance with Nevada contractor licensing obligations and protects eligible claimants from certain covered losses caused by the contractor.
2. Who requires the Nevada Contractors License Bond?
The Nevada State Contractors Board requires the bond as part of the contractor licensing process. The bond must be filed with the Board or replaced by an approved cash deposit in the required amount.
3. What is the required bond amount?
The required bond amount ranges from $1,000 to $500,000. The Nevada State Contractors Board determines the amount based on license type, monetary limit, financial responsibility, experience, character, and magnitude of operations.
4. Is the Nevada Contractors License Bond instant issue?
Yes. A1SuretyBonds.com offers Nevada Contractors License Surety Bonds on an instant issue basis up to $50,000 for eligible applicants.
5. What does instant issue mean?
Instant issue means no traditional underwriting review is required for eligible bonds. For Nevada Contractors License Surety Bonds up to $50,000 through A1SuretyBonds.com, it also means no required indemnity agreement.
6. How much does the bond cost?
The annual cost is typically 0.5%–1% of the required bond amount (Minimum Premium of $100) through A1SuretyBonds.com. For example, a $50,000 bond may generally cost between $250 and $500 per year, subject to applicable minimum premiums.
7. Is the bond premium the same as the bond amount?
No. The bond amount is the required penal sum assigned by the Nevada State Contractors Board. The premium is the cost paid to purchase the bond, typically a small percentage of the required bond amount.
8. Do I need underwriting for a bond under $50,000?
Eligible Nevada Contractors License Surety Bonds up to $50,000 are instant issue through A1SuretyBonds.com with no underwriting.
9. Do I need to sign an indemnity agreement?
For eligible Nevada Contractors License Surety Bonds up to $50,000 issued through A1SuretyBonds.com, no required indemnity agreement is needed.
10. What happens if my required bond amount is over $50,000?
Bond amounts above $50,000 may require underwriting, additional documentation, financial review, and an indemnity agreement depending on the surety’s requirements and the contractor’s profile.
11. Is the bond continuous?
Yes. Nevada states that bonds must be continuous in form and that a contractor’s license must have continuous bond coverage with no lapse.
12. Can the surety cancel the bond?
Yes. A surety may cancel the bond by giving 60 days’ notice to the Nevada State Contractors Board and the contractor by certified mail.
13. What happens if the bond is cancelled?
If the bond is cancelled and the contractor does not provide an equivalent bond or cash deposit before the required date, the contractor’s license must be suspended or revoked under NRS 624.275.
14. Who can make a claim against the bond?
Protected claimants may include owners damaged by failure to perform or remove liens, employees, suppliers, materialmen, and persons injured by certain unlawful acts or omissions of the contractor.
15. How long does someone have to file an action on the bond?
NRS 624.273 provides that no action may be commenced on the bond or deposit two years after the commission of the act on which the action is based.
16. Does the bond protect the contractor?
No. The bond protects eligible claimants and supports licensing compliance. It does not function as insurance for the contractor.
17. Does the contractor have to reimburse the surety for claims?
Yes. If the surety pays a valid claim, the contractor is generally responsible for reimbursing the surety. A surety bond does not transfer the contractor’s financial responsibility.
18. Does this bond replace liability insurance?
No. The Nevada Contractors License Bond does not replace general liability insurance, workers’ compensation coverage, or any insurance required by law, contract, or the Nevada State Contractors Board.
19. Does this bond replace a performance bond?
No. A license bond is for licensing compliance. A performance bond is project-specific and guarantees completion of a particular contract.
20. Does this bond replace a payment bond?
No. A payment bond is generally project-specific and protects laborers, subcontractors, and suppliers on a particular project. The Nevada Contractors License Bond is a licensing bond.
21. Do residential pool contractors have extra bond requirements?
They may. The Nevada State Contractors Board states that residential pool and spa contractors may be required to file an additional consumer protection bond or cash deposit ranging from $10,000 to $400,000.
22. Can the Board change my bond amount?
Yes. Under NRS 624.270, the Board may increase or reduce the bond or cash deposit amount if evidence supporting the change is presented at renewal or certain hearings.
23. Can I get relief from the bond requirement?
Possibly. After at least five consecutive years as a licensed Nevada contractor, the Board may relieve a licensee of the bond or cash deposit requirement if supporting evidence is presented. The Board may later reinstate the requirement.
24. What information do I need to apply?
You generally need the contractor’s legal name, license information, required bond amount, business structure, contact information, and payment. For bonds up to $50,000, eligible applicants can receive instant issue approval through A1SuretyBonds.com.
25. How fast can I get the bond?
Eligible Nevada Contractors License Surety Bonds up to $50,000 can be issued instantly through A1SuretyBonds.com after completing the online application and payment process.
26. Why does Nevada require an A-rated surety?
Nevada requires surety bonds to be written by a surety company authorized to transact business in the state, and the Nevada State Contractors Board states that the surety’s long-term obligations must be rated “A” or better.
27. What is the obligee on the bond?
The obligee is the State of Nevada / Nevada State Contractors Board. The bond is filed in favor of the State of Nevada for the benefit of protected persons under Nevada law.
28. What is the principal on the bond?
The principal is the contractor or contracting business required to file the bond. The principal is responsible for complying with Nevada contractor licensing law and reimbursing the surety for valid paid claims.
29. How do I apply now?
Confirm the required bond amount assigned by the Nevada State Contractors Board, then apply online through A1SuretyBonds.com. Eligible bonds up to $50,000 are instant issue with no underwriting and no required indemnity agreement.
APPLY for your NV Contractors License Bond now!