Contractor License Bond in California

What this bond requires in California

A few things California contractors routinely get wrong: The Bond of Qualifying Individual is separate. If your license qualifier isn't the sole owner of the business, you also need a $12,500 BQI bond. That's a second premium on top of the $25,000 contractor bond. The bond must be on the CSLB's exact form. A generic "contractor license bond" from an out-of-state surety will get rejected. The surety must be admitted in California and use the CSLB form. A disciplinary bond is a different animal. If your license has been revoked and reinstated, CSLB may require a $100,000 disciplinary bond instead of (or on top of) the standard $25,000 bond.

Who requires it

The contractor license bond is required by the Contractors State License Board under Business & Professions Code §7071.6.

How to file in California

The bond is filed directly with the CSLB. It must be on the CSLB's approved bond form and issued by a surety admitted in California. The bond stays in force until the surety or the contractor cancels it.

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FAQ

Common questions

Is a contractor license bond required in California?

Yes. California requires contractor license bonds issued by an admitted surety. The required amount is $25,000.

How much is the bond in California?

The bond amount is $25,000. Your annual premium is a small percentage of that, based on credit and experience.

Who requires the bond?

The bond is required by the Contractors State License Board.

How is the bond filed?

The bond is filed directly with the CSLB. It must be on the CSLB's approved bond form and issued by a surety admitted in California. The bond stays in force until the surety or the contractor cancels it.

What does the bond cover?

Surety bonds protect the obligee, not the principal. If you fail to meet the obligation the bond guarantees, the surety pays the claim and recovers from you.

Is a surety bond the same as insurance?

No. Insurance protects you. A surety bond protects whoever required the bond. You repay the surety for any claim they pay.