You want to do business in Oregon. Whether you are a contractor, an auto dealer, or a notary, one question comes up: do you need a surety bond? The answer depends entirely on your profession. Contractors need bonds. Auto dealers need bonds. Notaries do not. And the amounts and rules change in 2026. This guide covers everything you need to know about Oregon surety bonds—the requirements, the costs, and exactly how to get bonded.
What Is an Oregon Surety Bond?
A surety bond is a three-party agreement that guarantees a business will comply with state laws and fulfill its obligations to customers and the state . If the business fails to perform—through fraud, code violations, or non-payment—the bond provides financial compensation to the harmed party.
The three parties are:
- Principal: The business or individual who needs the bond
- Obligee: The Oregon state agency requiring the bond (e.g., Landscape Contractors Board, DMV, Construction Contractors Board)
- Surety: The company that issues the bond and backs the guarantee
If a claim is filed against the bond and found valid, the surety pays the claimant up to the bond amount. The business must then reimburse the surety in full.
Oregon Notary Bonds: Not Required
Oregon does not require notaries to purchase a surety bond. According to both the Oregon Secretary of State and the National Notary Association, bonds and E&O insurance are not currently required in Oregon .
However, even though bonding is not required, it is strongly recommended that notaries consider purchasing Errors and Omissions (E&O) insurance. If you are involved in an investigation or court case, legal defense can cost thousands of dollars, even if you have done nothing wrong . E&O insurance covers legal fees and damages up to the policy amount.
Oregon Contractor License Bonds
Landscape Contractors Board (LCB) Bonds
Landscape contracting businesses in Oregon must maintain an active surety bond as part of their license .
Important 2026 Change: Beginning January 1, 2026, ALL landscape contracting businesses must carry a $20,000 bond, except for Probationary phase holders, which still require a $15,000 bond (SB 864) .
| License Type | Bond Amount (Before Jan 1, 2026) | Bond Amount (Jan 1, 2026 onward) |
|---|---|---|
| Landscape contracting business | $15,000 | $20,000 |
| Probationary license holder | $15,000 | $15,000 |
Additional requirements:
- Certificate of Liability Insurance with minimum $500,000 coverage
- Workers’ Compensation Insurance (if you have employees)
- The Landscape Contractors Board (LCB) must be listed as the certificate holder
These documents must be submitted when applying for a new license and maintained throughout the life of your license .
Construction Contractors Board (CCB) Bonds
Under Oregon Revised Statutes (ORS) 701.068, applicants for issuance or renewal of a contractor license must file a surety bond with the Construction Contractors Board .
Residential contractors: $10,000 residential bond
Commercial contractors: Bond amounts set forth in ORS 701.081 and 701.084
Dual license holders: If an applicant holds endorsements as both a residential contractor and a commercial contractor, they must file a separate surety bond for each endorsement .
Bond requirements:
- The bond must remain in effect for at least one year or until depleted by payments
- Aggregate liability of the surety may not exceed the penal sum of the bond no matter how many years the bond is in force
- The board may require a licensee to obtain a new surety bond if the surety pays an amount out of the bond
Bond cost estimates from providers:
- Residential Contractor License Bond: Starting around $8/month for well-qualified contractors
- Commercial Contractor License Bond: Starting around $13/month for well-qualified contractors
Oregon Auto Dealer Bonds
Every motor vehicle dealer in Oregon must provide a surety bond or a letter of credit to the DMV Business Licensing Unit before a certificate can be issued .
Purpose: These bonds protect consumers if a licensed dealer commits fraud, fails to comply with the Oregon vehicle code, violates lending practices, alters odometers, or falsely advertises vehicle prices or conditions .
Bond term: Auto dealer bonds are valid for one year and must be renewed annually . Your dealer license is valid for three years, so you will need to renew your bond multiple times during the life of your license .
Cost factors: Premiums are influenced by personal credit score, financial history, and dealership experience. Applicants with strong credit usually pay between 1% and 3% of the bond amount . Dealers with challenged credit can still qualify, though often at higher rates .
Construction Performance and Payment Bonds
Oregon contractors may need performance and payment bonds for specific projects, particularly public works and large commercial projects .
Typical cost: 1-3% of the bond amount
New retention law (effective October 2024): Oregon public works agencies and large commercial project owners are now required to accept surety bonds in lieu of withholding retainage on construction projects . There is also no longer a requirement to deposit retention funds in an interest-bearing escrow account .
Under ORS 701.435, the owner and lender shall accept a surety bond in lieu of all or any portion of the retainage . Public agencies may reject a bond only if there is “good cause” based on unique project circumstances. Private owners have less discretion to reject a bond .
Other Oregon Surety Bonds
Highway Use Tax Bond
Required by the Oregon Department of Transportation for motor carriers. Cost starts around $8/month for well-qualified carriers .
Janitorial and Dishonesty Bonds
For janitorial or service businesses to protect customers from theft. Pricing varies .
Oregon Probate Bond
Required by Oregon Probate Courts for executors, administrators, and guardians. Starts at $100 depending on bond amount .
ERISA Bonds
Required by the U.S. Department of Labor for retirement plans (401k, pension plans) .
BMC-84 Freight Broker Bond
Required by the Federal Motor Carrier Safety Administration. Cost starts around $70/month .
How Much Does an Oregon Surety Bond Cost?
The cost is a small percentage of the bond amount—your premium. Most applicants with good credit pay between 1% and 3% of the bond amount .
| Bond Type | Bond Amount | Typical Premium (Good Credit) |
|---|---|---|
| Landscape contractor (2026) | $20,000 | $200 – $600 |
| Residential contractor | $10,000 | $100 – $300 |
| Commercial contractor | Varies | $150 – $500+ |
| Auto dealer (standard) | $50,000 | $500 – $1,500 |
| Auto dealer (special) | $10,000 | $100 – $300 |
Factors affecting your premium:
- Personal credit score (primary factor)
- Business financial history
- Years in business and industry experience
- Bond amount required
How to Get an Oregon Surety Bond
The process follows four simple steps, and specialists like Swiftbonds have placed these bonds for Oregon businesses, working with A.M. Best A-rated sureties. Here is how it works:
- Apply: Complete a surety bond application with your business information, credit details, and the specific bond type and amount required by your Oregon agency.
- Quote: Within hours, the surety returns a premium quote based on your credit profile and the required bond amount.
- Pay: You pay the premium via credit card, ACH, or wire transfer.
- File: The surety issues the bond, and you file it with the relevant Oregon agency (Landscape Contractors Board, DMV, Construction Contractors Board, etc.) as required.
Swiftbonds LLC
2024 Surety Bond Provider of the Year
4901 W. 136th Street
Leawood KS 66224
(913) 214-8344
https://swiftbonds.com/
Frequently Asked Questions
Q: Do notaries in Oregon need a surety bond?
No. Oregon does not require notaries to purchase a surety bond or E&O insurance . However, E&O insurance is strongly recommended to protect against legal costs.
Q: What is the bond amount for landscape contractors in Oregon?
Beginning January 1, 2026, all landscape contracting businesses must carry a $20,000 bond. Probationary license holders require a $15,000 bond .
Q: How much is an Oregon auto dealer bond?
Standard motor vehicle dealers need a $50,000 bond (premium starts at $500/year). Special dealers handling only motorcycles, mopeds, ATVs, or snowmobiles need a $10,000 bond (premium starts at $100/year) .
Q: Do I need a bond to be a residential contractor in Oregon?
Yes. Residential contractors must maintain a $10,000 bond with the Construction Contractors Board .
Q: Can I get a surety bond with bad credit in Oregon?
Yes. Many sureties offer programs for applicants with challenged credit, though premiums will be higher .
Q: How long does an Oregon surety bond last?
Most license bonds are valid for one year and must be renewed annually . Some bonds are continuous and remain in effect until canceled .
Q: What happens if a claim is filed against my bond?
The surety investigates. If valid, the surety pays the claimant up to the bond amount. You must then reimburse the surety in full.
Q: What is the new Oregon retention law?
As of October 2024, public agencies and large commercial project owners must accept surety bonds in lieu of withholding retainage on construction projects .
5 Interesting Things About Oregon Surety Bonds Not in the Top 10 Sites
- Oregon’s landscape contractor bond amount is increasing in 2026. Under Senate Bill 864, effective January 1, 2026, the bond requirement jumps from $15,000 to $20,000—the first increase in over a decade .
- Oregon is one of the few states that does not require notary bonds. Most states require notaries to post bonds, but Oregon stands out by having no bonding requirement at all for notaries .
- The Oregon Construction Contractors Board can require a new bond after a claim. If the surety pays an amount out of your bond following a board determination, the board may require you to obtain a new surety bond .
- Oregon contractors with both residential and commercial endorsements need two separate bonds. Unlike some states that allow a single combined bond, Oregon requires a separate bond for each endorsement .
- Oregon’s new retention bond law gives private owners less discretion to reject bonds. Under ORS 701.435, if a bond meets statutory requirements, private owners must accept it. Public agencies can reject only for “good cause” based on unique project circumstances .
Conclusion
Oregon requires surety bonds for many professions, but not all. Landscape contractors need a $20,000 bond (effective January 1, 2026) . Residential contractors need a $10,000 bond . Auto dealers need $50,000 or $10,000 bonds depending on vehicle type . Notaries, uniquely, need no bond at all .
The cost of an Oregon surety bond is a small percentage of the bond amount—typically 1-3% for applicants with good credit. A $10,000 bond might cost $100-$300, while a $50,000 bond might cost $500-$1,500.
Before applying for any Oregon surety bond, confirm the specific requirement with the relevant agency: the Landscape Contractors Board, Construction Contractors Board, DMV, or Secretary of State. The bond is not optional for most licensed professions—it is a condition of doing business legally in Oregon.