Louisiana Contractor License Bond - Bond in Lieu of Net Worth Explained

Get your Louisiana Contractor License Bond today!

If you’re applying for or renewing a commercial contractor license in Louisiana, the Louisiana State Licensing Board for Contractors (LSLBC) may require a contractor license bond in place of its net worth requirement as part of the state’s financial responsibility requirements. Surety Bond Authority issues Louisiana contractor bonds quickly and affordably, with same-day approvals available.

 

Start now: Get Your Louisiana Contractor License Bond

 

For general contractor bonding information, you may also review our Contractor’s License Bond page.

 

Understanding Louisiana Contractor License Bond Requirements

Louisiana licenses commercial contractors under La. R.S. 37:2150–2192 through the Louisiana State Licensing Board for Contractors.

 

In many cases, the Board requires contractors to demonstrate financial responsibility. 

 

How much is the Louisiana contractor license bond?

The Louisiana State Licensing Board for Contractors requires commercial, residential and mold remediation applicants to show a net worth of at least $10,000 on their financial statement. An applicant who cannot show that net worth may furnish the Board a surety bond, letter of credit, or other acceptable security in the amount of the net worth requirement plus the amount of any negative net worth. In practice that means a $10,000 bond for most applicants, and more if the financial statement shows a deficit. The Board confirms the exact figure when it reviews your application. Home improvement registrants ($7,500 to $75,000 jobs) have no net worth or bond requirement.

 

Who Needs a Louisiana Contractor License Bond?

Only applicants whose financial statement does not show the $10,000 net worth the Board requires. The bond covers the shortfall: $10,000, plus any negative net worth shown on the statement.

 

What the Louisiana Contractor Bond Guarantees

This bond protects:

• Project owners
• Subcontractors
• Suppliers
• Laborers
• The State of Louisiana

It guarantees the contractor will:

• Follow Louisiana contracting laws
• Complete work according to contract
• Pay subcontractors and suppliers
• Avoid fraud or misrepresentation
• Maintain financial responsibility

If the surety pays a valid claim, the contractor must reimburse the surety.

 

Filing the Bond With the Louisiana State Licensing Board

To activate or maintain a license, the bond must:

• Be written on the official LSLBC form
• Match the contractor’s exact legal business name
• Reflect the required bond amount
• Be issued by an authorized surety

Surety Bond Authority provides same-day bond issuance and ensures the bond meets all Board requirements.

 

Cost of a Louisiana Contractor License Bond

The price of your Louisiana contractor license bond is primarily dependent on your personal credit profile (FICO score) and overall financial strength.

 

In general:

• The stronger your credit, the lower your rate.
• Contractors with higher credit scores qualify for the most competitive pricing.
• Applicants with lower credit can still qualify, although pricing may be higher depending on underwriting.

We shop multiple A-rated surety carriers to secure the most competitive rate available for your situation.

 

Get Your Louisiana Contractor License Bond Today

If the Louisiana State Licensing Board requires you to post a contractor license bond, we can issue it quickly and at competitive rates.

Start now: Get Your Louisiana Contractor License Bond.