File a Guaranty Fund Claim for an Unpaid Judgment Against a Contractor

The Home Improvement Contractor (HIC) Program Guaranty Fund helps compensate eligible homeowners up to $25,000 for unpaid judgments against contractors.

The HIC Guaranty Fund: 

• Is a fund of last resort for consumers who have an unpaid final judgment against a contractor
• Is funded by a one-time fee that contractors are required to pay at the time of registration
• Compensates eligible consumers for their actual loss up to $25,000
  • Actual loss may be different than the monetary arbitration award or judgment issued

After a consumer is paid from the Guaranty Fund, the responsible registered contractor is obligated to reimburse the Fund with interest within 30 days. Failure to repay the Fund may result in administrative fines, revocation of the contractor's registration, and in extreme cases, criminal prosecution.

Submit a Guaranty Fund Claim

If you win your case in arbitration or in court and the contractor fails to pay the award or judgment, you can apply to the HIC Guaranty Fund for up to $25,000 of your actual losses.

You must submit your application for a Guaranty Fund within seven years of the date of the contract.

To be eligible for the Guaranty Fund, you must be able to prove that:

• There was a contract for the job
• The contractor was registered with the OCABR at the time the contract was signed
• The contractor - not the homeowner - secured the building permit
• The contract was for work on a pre-existing one to four family residence in Massachusetts that is the owner's primary residence
• A court judgment or arbitration award in the homeowner's favor has been issued, and all "reasonable efforts to collect" the judgment or award have been exhausted
• A Guaranty Fund application was filed within seven years of the arbitration award or court judgment

Submit a Guaranty Fund Claim at the MA Contractor Hub.