Contractor Bonds for California and Every State

It’s a bond a state, city or county requires before you can get or keep a contractor license. It protects your customers and workers if you break licensing law. In California, the contractor’s bond is for consumers harmed by defective construction or other license-law violations, and for employees who aren’t paid wages they’re owed. A bond isn’t insurance for your business. If the surety pays a claim, you’re expected to pay it back.

CSLB requires a $25,000 contractor’s bond. If your license is qualified by a Responsible Managing Employee (RME), or by a Responsible Managing Officer (RMO) who owns less than 10% of the voting stock, you also need a $25,000 Bond of Qualifying Individual. LLC licenses also need a $100,000 LLC Employee/Worker Bond.

You don’t pay the full bond amount. You pay a premium to the surety. The price depends on the bond type and amount, your personal credit, your experience, and your business financials. Fill out the form and we’ll send you a same-day quote with your actual price.

We provide same-day quotes. Fill out the form or call 530.320.3617. If you’re working against a deadline, like a bid date or a letter from the licensing board, tell us when we reach out.

Yes. The Contractors Resource Center writes contractor bonds in every U.S. state. Choose your state in the form. Insurance, like general liability and workers’ comp, is offered to California contractors only.

A bid bond is often required when you bid on a project. It tells the project owner that if you win, you’ll sign the contract and provide the performance and payment bonds the job requires. Have the project name and bid date ready when you request a quote.

CSLB describes a performance bond as backing completion of the project according to the plans and specifications, and a payment bond as assuring the owner that no liens for labor and materials will be filed against the property. They’re written for a specific project and are often required by owners, lenders and general contractors. They’re often written together.

No. CSLB requires a contractor’s bond before it can issue an active license, reactivate an inactive license, or renew an active license. If your bond is canceled and not replaced, your license is suspended, and any work done while it’s suspended is considered unlicensed.

You need one if your California license is qualified by a Responsible Managing Employee (RME), or by a Responsible Managing Officer (RMO) who owns less than 10% of the voting stock. An LLC qualifier who owns at least a 10% membership interest and certifies it doesn’t need one. It’s separate from the contractor’s bond and can’t be combined with it.

A California LLC license needs the $25,000 contractor’s bond plus a $100,000 LLC Employee/Worker Bond, which protects workers against unpaid wages and benefits. CSLB also lists liability insurance as a requirement for LLC licenses. California contractors can get help with that here, too.

Yes. New California applicants use the application fee number from CSLB. After you pass your exam, CSLB sends a bond and fee letter that lists what you need to file. You can enter your application fee number in the form.

Yes. CSLB must receive your bond within 90 days of its effective date. The business name and license number on the bond must match CSLB’s records exactly, so give us your name exactly as it appears on your license or application.

CSLB says a bond can be written for whatever term you and your bond provider arrange, and most are written for one to three years. A bond stays in effect until CSLB receives a cancellation notice from the surety. Your bond renewal date and license renewal date rarely match, so keep track of both.

If a California license has been revoked for a license-law violation, CSLB requires a disciplinary bond to reinstate or reissue it. The Registrar sets the amount based on the violations. It’s at least $25,000 and no more than ten times the contractor’s bond. It must stay on file for at least two years, in addition to your other bonds.

No. A license bond protects your customers and workers if you break licensing law, and you repay any claim the surety pays. General liability insurance protects your business against covered claims for property damage or injury. California contractors can get both through The Contractors Resource Center.