California Contractors License Surety Bonds
***Effective Jan 1 2023 the required surety bond amount increases to $25,000***
A California Contractor's License Surety Bond must be filed with the CA Contractors State License Board (CA CSLB) in order for them to issue an contractors license, reactivate an inactive license, renew a cancelled license or the maintenance of an active license in accordance with CA Business and Professions Code Section 7071.6.
The bond is required for the benefit of consumers who may be damaged as a result of the actions of the contractor, including but not limited to defective construction or other license law violations, and for the benefit of employees who haven't been paid wages that are due to them. For additional information please refer to the Contractors State License Board website
What is a California contractor license bond and who needs one?
Contractors operating in the state of California must post the required $25,000 surety bond to secure their contractors license. The surety bond guarantees their compliance with the provisions of Division 3, Chapter 9 of the CA Business and Professions Code. The bond provides a form of financial protection for consumers from financial loss up to the penal amount of the bond in the event the contractor or contracting company fails to comply with California law as outlined in the provisions stated on the surety bond and the corresponding statutes and laws. The bond is required to remain in full force and effect for the term of the license or until canceled by the surety company or released by the CA CSLB. If you are an existing client of ours, we will email you a bond renewal notice approximately 60 days prior to your bond expiring. If you are not an existing client of ours, we would love to earn your business, apply for your California contractors license bond today!
What are the requirements to get a CA Contractors License Bond and how much do they cost?
Anyone can apply for and secure a contractors license board, as long as they are working toward or maintaining a CA contractors license. As with most surety bonds, you will start by completing our simple online bond application and from there we will pull a quick credit report (it's a soft hit, so it won't affect your score!). Applicants with good credit can expect a lower rate than someone with less than stellar credit. Rates are currently ranging from as low as $150 - $250 per year (depending on credit, years of experience, ownership of real estate and business net worth) and higher for accounts with credit issues. Multi year options are available if you would like to prepay your bond for up to 3 years, ask our staff if you are interested in options.
- The bond must be written by a surety company licensed through the California Department of Insurance.
- The bond must be in the amount of $25,000
- The business name and license number on the bond must correspond exactly with the business name and license number on the Contractors State License Board's records.
- The bond must have the signature and Power of Attorney of the attorney-in-fact for the surety company.
- The bond must be written on the form approved by the CA Attorney General's Office.
- The bond must be received at the Contractors State License Board's Headquarters Office within 90 days of the effective date of the bond.
What are the different classifications of California Contractors License and what are the surety bond requirements?
While there are many classifications of license type in California the bond requirements are broken down into the following:
|California Contractors License Bonds||Bond Required||Apply for your CA Contractors License Bond today! |
|Contractors License Bond - required from all active licensees||$25,000||Apply Now|
|Contractors License Bond - Qualifying Individual (RME or RMO) - required for the qualifying individual who is a responsible managing employee (RME) or is a responsible managing officer (RMO) who owns 10 percent or less of the voting stock/equity of the license entity, Responsible Managing Employee (RME) - required for an employee who serves as the qualifying individual on a sole owner, partnership, corporate, or limited liability company license, Responsible Managing Officer (RMO) - required for an officer who serves as the qualifying individual on a corporate or limited liability company license||$25,000||Apply Now |
|Contractors License Bond - Disciplinary Bond - required when disciplinary action has been taken against a license||varies||Apply Now |
Who regulates contractor licensing in California?
The California Contractors State License Board (CSLB) is responsible for establishing and enforcing licensing and surety bond requirements for contractors working in the state of California. The California Department of Consumer Affairs (DCA) is the overseeing department that handles the legislation of requirements relating to contractors Other regulatory agencies, like city, county or municipality licensing departments, might also enforce their own additional license and bonding requirements. Additional information can be found on the CACSLB website
Some other bonds that California Contractors may need: