License & Permit
Sign Hanger Bond
A sign hanger bond is a license bond some cities require before a contractor can install, hang, or take down signs within city limits.
- Required by
- City and county licensing or building departments
- Bond amount
- Set by whoever requires the bond. We confirm it.
What this bond guarantees
The bond promises the city (the obligee) that the sign hanger will follow the local sign and building codes. If the contractor's work breaks the code or damages public property, the city or an injured party can claim against the bond. The surety pays valid claims and the contractor repays the surety.
Who needs it
- Sign contractors and sign erectors
- Sign companies that install their own signs
- Billboard installers
What the underwriter looks at
- Personal credit
- Years in business
- Claims or code violation history
Requirements vary by state and by who asks for the bond. Send us the request you received and we will confirm exactly what it calls for.
Common questions
How much is a sign hanger bond?
The city sets it. Amounts we have seen run from about $2,000 (Junction City, Kansas) to $8,000 (Minneapolis). Check your city's license application.
Do I need insurance too?
Usually. Cities that license sign hangers often ask for a general liability insurance certificate along with the bond. The bond does not protect you; it protects the city and the public.