What the bond is
When a contractor registers with the Department of Labor & Industries (L&I), they have to post a surety bond. Think of it as a financial promise: a bonding company stands behind a set dollar amount that can be used to pay valid claims if the contractor breaks the rules or fails to deliver. In Washington, general contractors carry a $12,000 bond and specialty contractors a $6,000 bond. Confirm the current amounts at lni.wa.gov, since these can change.
What the bond covers
A contractor bond can pay out valid claims for things like:
- Unpaid work or breach of contract, where the contractor took payment and failed to perform.
- Unpaid subcontractors or suppliers, which protects you from liens in some cases.
- Certain damages a court awards against the contractor related to the work.
What the bond does NOT cover
This is the part homeowners miss. The bond is not a full insurance policy on your project. The dollar amount is capped, and on a kitchen or bath remodel that runs tens of thousands of dollars, a $12,000 bond may only cover a fraction of a serious loss. On top of that, if multiple people file claims against the same bond, they may have to share that limited pool. The bond also is not the same as the contractor's liability insurance, which covers property damage and injuries.
In short: the bond is a meaningful backstop, but it is a limited one. It is one good reason to verify registration, not a reason to skip every other safeguard. Combine it with a solid contract and milestone payments. See our advice on reasonable deposits and what to ask before you hire.
How to file a claim against a bond
The process generally works like this:
- You typically need a court judgment against the contractor establishing what they owe.
- You then file a claim against the bond through the bonding company named on the L&I record.
- Because the bond is capped and may be shared among claimants, act promptly if a project goes bad.
Note that you can only claim against a bond if the contractor was registered in the first place. A contractor who was never registered has no bond to claim against, which is the whole reason to verify the license before you sign.
The takeaway
"Bonded" is a baseline, not a guarantee. Use the L&I record to confirm the bond is active, understand it is limited, and protect yourself with a good contract and smart payment schedule. For the full hiring process, start with our guide to choosing a remodeler.
Want to skip straight to contractors who are already registered and bonded? Get free quotes from vetted Washington pros.