Quick Facts:

  • Regulating Agency: Wisconsin Department of Safety and Professional Services (DSPS)
  • Required Bond Amount: $25,000 (state level for dwelling contractors)
  • Cost Range: $90-$250 annually (depending on credit)
  • Required For: Dwelling Contractors, plus various municipal requirements

What Is a Wisconsin Contractor License Bond?

A Wisconsin contractor license bond is a financial guarantee that ensures contractors will comply with applicable laws, building codes, and permit conditions. When a contractor purchases a bond, they’re promising to follow regulations and complete work properly. If they fail to do so, the bond provides financial recourse to injured parties such as homeowners or government entities.

Who Regulates Wisconsin Construction Contractor Licensing?

The Wisconsin Department of Safety and Professional Services (DSPS) regulates contractor licensing at the state level, primarily for residential dwelling contractors. However, Wisconsin does not require state-level licensing for general commercial contractors. Instead, many municipalities have their own licensing and bonding requirements for contractors working within their jurisdictions.

Wisconsin DSPS Dwelling Contractor Information

What Bond Amount Is Required in Wisconsin?

At the state level, Dwelling Contractors must either:

  • Post a $25,000 surety bond, OR
  • Carry at least $250,000 in general liability insurance

For contractors who choose to file a Dwelling Contractor Restricted certification, the bond amount can range from $5,000 to $24,999, with the understanding that the contractor cannot undertake any project exceeding the bond amount.

Municipal bond requirements vary by city:

  • Milwaukee: $5,000 (Home Improvement), $10,000 (Plumbing)
  • Superior: $25,000 (All contractors)
  • Madison: $5,000 (for specific contractor types)
  • Kenosha: $10,000 (Sidewalk/Sign/ROW contractors)

How Much Does a Contractor Bond Cost in Wisconsin?

The cost of a contractor license bond in Wisconsin typically ranges from 1% to 5% of the bond amount annually:

  • $5,000 bonds often cost around $100/year
  • $10,000 bonds may cost $100-$150/year
  • $25,000 bonds generally cost $125-$250/year

Factors affecting bond cost include:

  • Credit score and history
  • Years in business
  • Prior claims history
  • Bond amount required

Contractors with strong credit can typically secure lower rates, sometimes below 1.5% of the bond amount. Those with credit challenges might pay higher rates, up to 10% in some cases.

Who Needs a Contractor License Bond in Wisconsin?

At the state level, anyone who pulls building permits for one- and two-family dwellings must have a Dwelling Contractor certification, which requires either a $25,000 bond or $250,000 liability insurance.

At the municipal level, requirements vary:

  • Milwaukee: Home improvement contractors, plumbers, electricians, and concrete contractors
  • Madison: Contractors doing concrete, asphalt, sewer maintenance, or related work
  • Superior: ALL contractors (building, electrical, HVAC, etc.)
  • Kenosha: Sidewalk, sign, and right-of-way contractors
  • Other cities: Various requirements (check local ordinances)

What Other Contractor Bonds Are Required in Wisconsin?

Beyond the standard contractor license bonds, Wisconsin municipalities may require:

  • Right-of-Way bonds (for street excavation)
  • Plumber’s Performance bonds
  • Natural Gas Contractor bonds (La Crosse)
  • Material/Dumpster Placement bonds (Oconomowoc)

Additionally, contractors should maintain appropriate liability insurance, which is often required alongside bonding. The state-level Dwelling Contractor certification allows substituting $250,000 liability insurance for the bond requirement.

How Does Our Application Process Work?

  1. Complete our simple online application form
  2. Receive your free quote instantly
  3. Pay securely online
  4. Download your bond certificate immediately

The entire process can be completed in minutes, with no paperwork to mail or fax.

How Quickly Can I Purchase a Bond?

Most Wisconsin contractor bonds can be issued instantly online. After completing our simple application and providing payment, you’ll receive your bond certificate immediately via email. Simply print the certificate for your records or to submit with your license application.

Who Files the Bond With the WI Once It Is Purchased?

In most cases, you (the contractor) are responsible for filing the bond with the appropriate licensing authority:

  • For state Dwelling Contractor bonds: File with Wisconsin DSPS
  • For municipal bonds: File with the appropriate city department (Building Inspection, City Clerk, or Engineering)

The bond certificate must be submitted along with your license application or renewal. Be sure to keep a copy for your records.

How Are Claims Handled on a Wisconsin Contractor Bond?

If a contractor fails to comply with regulations or properly complete work, an injured party (such as a homeowner or municipality) can file a claim against the bond. The claim process generally works as follows:

  1. The claimant files a formal complaint with the appropriate authority
  2. The surety company investigates the claim
  3. If the claim is valid, the surety pays the claimant up to the bond amount
  4. The contractor must reimburse the surety company for any paid claims

It’s important to understand that the bond protects your customers, not you. If a claim is paid out, you are legally obligated to repay the surety company in full.

Frequently Asked Questions (FAQ)

What if I have bad credit?

While good credit helps secure lower bond rates, contractors with challenged credit can still obtain bonds. You may pay a higher premium, but many sureties offer programs specifically for contractors with credit issues.

What are the penalties for working without a required bond?

Operating without a required bond can result in:

  • License suspension or revocation
  • Monetary fines
  • Stop work orders
  • Inability to pull permits
  • Potential legal liability

How do bond renewals work?

Most contractor bonds in Wisconsin must be renewed annually or biennially, depending on the authority’s requirements. You’ll receive a renewal notice before your bond expires. Some municipalities require bonds to run on the calendar year (January to December).

What’s the difference between a bond and insurance?

While both provide financial protection, they serve different purposes:

  • A bond protects your customers and the public from your non-compliance
  • Insurance protects you and your business from various risks

Many Wisconsin contractors need both a bond and liability insurance to meet licensing requirements.

Ready to Get Your Wisconsin Contractor License Bond?

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