Michigan Sewage Disposal Contractor Bond – $25,000 Bond Requirement

If you operate as a sewage disposal contractor in Michigan, the state requires you to obtain a $25,000 Sewage Disposal Contractor Bond before you can be licensed. This bond ensures that contractors comply with state and local regulations when installing, maintaining, or repairing sewage disposal systems, including septic tanks and drainage fields.

From my experience, many contractors only discover they need this bond when applying for or renewing their Sewage Disposal Contractor License. If you're in that situation, this guide will help you understand what the bond is, why it’s required, how much it costs, and how to get one quickly.

What Is a Michigan Sewage Disposal Contractor Bond?

A Sewage Disposal Contractor Bond is a type of surety bond required by the Michigan Department of Environment, Great Lakes, and Energy (EGLE). It serves as a financial guarantee that the contractor will perform work in compliance with Michigan’s Public Health Code (Act 368 of 1978) and other local health department regulations.

Key Purposes of the Bond:

✔ Ensures that contractors follow Michigan sanitation and environmental laws
✔ Protects homeowners and businesses from faulty septic system work
✔ Provides financial compensation if the contractor fails to complete work properly
✔ Ensures the contractor corrects any violations at their own expense

If a sewage disposal contractor violates regulations or fails to fulfill their obligations, a claim can be filed against the bond to cover damages or necessary repairs.

Who Needs a Michigan Sewage Disposal Contractor Bond?

You are required to obtain this $25,000 surety bond if you:

✅ Install, repair, or maintain septic tanks, drainage fields, or sewage disposal systems
✅ Apply for or renew a Sewage Disposal Contractor License in Michigan
✅ Work on residential or commercial sewage disposal projects
✅ Are required by a county or municipal health department to carry a bond

This bond is typically needed for contractors who handle on-site sewage disposal systems, including:

🚜 Septic system installation and repair contractors
🏡 Drain field specialists
🔧 Excavation and site preparation companies
🌱 Wastewater treatment system installers

Since Michigan's sewage disposal laws vary by county and local jurisdiction, you should check with your local health department to confirm bond requirements for your area.

Why Is a Michigan Sewage Disposal Contractor Bond Required?

The $25,000 Sewage Disposal Contractor Bond is required to:

✔ Ensure contractors adhere to Michigan’s Public Health Code
✔ Hold businesses accountable for defective or non-compliant sewage system work
✔ Protect homeowners, businesses, and the environment from improper sewage disposal
✔ Provide financial compensation if a contractor fails to complete a project or causes damage

In my experience, local health departments take sewage disposal regulations very seriously because improper work can lead to public health hazards, groundwater contamination, and legal liabilities. This bond is designed to prevent these risks by ensuring that contractors operate responsibly.

How Much Does a Michigan Sewage Disposal Contractor Bond Cost?

Although the bond amount is set at $25,000, contractors don’t have to pay the full amount upfront. Instead, they pay a bond premium, which is a small percentage of the bond amount.

Typical Cost Estimates:

📌 For contractors with good credit (700+ score) → $250 - $750 per year
📌 For contractors with fair credit (650-699 score) → $750 - $1,250 per year
📌 For contractors with poor credit (below 650) → $1,250+ per year

The actual cost of the bond depends on factors like:
📌 Personal and business credit score
📌 Industry experience and financial history
📌 Claims history on previous bonds

From my experience, working with a surety agency that specializes in contractor bonds can help reduce costs—especially if you have credit challenges.

How to Obtain a Michigan Sewage Disposal Contractor Bond

Getting a $25,000 Sewage Disposal Contractor Bond is a fast and easy process:

1️⃣ Confirm Your Bond Requirement – Check with EGLE or your local health department to verify the bond amount and any specific conditions.
2️⃣ Complete a Bond Application – Provide business details, financial history, and ownership information.
3️⃣ Receive a Quote – Your bond rate is based on credit score, financial strength, and business history.
4️⃣ Pay for the Bond – Once approved, pay the bond premium to activate your coverage.
5️⃣ Submit the Bond to the Licensing Authority – File the bond with the Michigan Department of Environment, Great Lakes, and Energy (EGLE) or your local health department.

Most bonds can be issued within 24 hours, so you can get licensed without delays.

What Happens If a Claim Is Filed Against Your Bond?

If a contractor fails to comply with state laws or performs faulty sewage system work, affected parties can file a claim against the bond.

Common Reasons for Bond Claims:

🚨 Improper installation or maintenance of septic tanks
🚨 Violations of state or local sewage disposal laws
🚨 Failure to complete contracted work
🚨 Environmental contamination due to negligence

If a claim is validated, the surety company may pay out damages up to the $25,000 bond limit. However, the contractor is ultimately responsible for reimbursing the surety company for any claims paid.

To avoid claims, contractors should:
✔ Follow Michigan’s sewage disposal regulations
✔ Obtain proper permits before starting work
✔ Use approved materials and installation methods
✔ Ensure work is inspected and approved by local authorities

Why Choose Axcess Surety for Your Michigan Sewage Disposal Contractor Bond?

At Axcess Surety, we specialize in helping contractors secure the bonds they need—fast and at the best rates available.

✔ Quick Approvals – Most bonds issued within 24 hours
✔ Competitive Pricing – Low-cost bond options, even for contractors with credit challenges
✔ Expert Support – Our team understands Michigan’s sewage disposal bond requirements
✔ Easy Online Application – Apply in minutes from anywhere

Get Your Michigan Sewage Disposal Contractor Bond Today!

Need a $25,000 Sewage Disposal Contractor Bond for your Michigan business? We make it fast, easy, and affordable.

🔗 Apply Now or call us today to get started!