Who this applies to
Wisconsin sets no bond that all contractors must carry. The bond described here is tied to the Dwelling Contractor certification, which a business needs, along with a Dwelling Contractor Qualifier, to obtain a building permit for a one- or two-family dwelling.
That certification requires proof of financial responsibility, and the bond is one of two [1] ways to provide it:
- a surety bond of at least $25,000 [1], or
- general liability insurance of at least $250,000 [1] per occurrence.
Either one meets the same requirement, so a business with the insurance in place has no bond to post. Bonding below $25,000 [1] leads somewhere else: the applicant goes into the Dwelling Contractor Restricted certification instead.
What the rule says
Wis. Stat. § 101.654(2) [1] supplies the options. A bond under it is endorsed by a surety company authorized to do business in Wisconsin, which means licensed there. It is executed in the name of the State of Wisconsin for the benefit of any person who sustains a loss, and its condition is that the business follows the one- and two-family dwelling code wherever that code applies to its work.
Cancellation is fenced in on both routes. Neither the bond nor the insurance can be canceled except on 30 days' [1] written notice served on the Department, and if replacement proof is not filed, DSPS may suspend the certificate of financial responsibility without notice.
How to comply
The Wisconsin Department of Safety and Professional Services (DSPS) issues the certification. Its Dwelling Contractor page is at dsps.wi.gov, and DSPS form #3096 [1] sets out the bond and insurance options.
- Pick the proof the business will carry, bond or insurance; one of them is enough.
- On the bond route, the surety has to be licensed in Wisconsin, and the bond has to reach $25,000 [1] or more to fit this certification rather than the Restricted one.
- When a bond or policy is being canceled, file replacement proof with DSPS. Without it, the certificate of financial responsibility can be suspended without notice.
Confirm the figures against the current form and with DSPS before applying.
Related
- Contractor license bond cost calculator: a bond amount and a credit tier in, an annual premium range out.
- All states' bond requirements: Wisconsin's dwelling-contractor rule next to every other state's.