California Contractor License Bond

Exact requirements, real costs, and how to file the bond without paying a broker 30% to do it for you.

$25K

Required bond amount for every licensed contractor in California

The Short Version

What California Actually Requires

→ $25,000 bond required for every licensed contractor in California
→ Amount was raised from $15,000 to $25,000 on January 1, 2023 (SB 607)
→ Required for A (General Engineering), B (General Building), and all C (Specialty) licenses
→ A separate $12,500 Bond of Qualifying Individual may also be required if the qualifier is not the sole owner

Bond Amount

The California Bond Amount

California makes it simple. Every licensed contractor posts the same bond amount, regardless of classification or project size. The requirement is set by Business & Professions Code §7071.6 and administered by the Contractors State License Board.

$25,000

All licensed contractors — A, B, and C classifications

Cost Breakdown

What Your California Bond Actually Costs

You don't pay the full bond amount. You pay a premium — a percentage of the bond based on your credit score. Here's what the annual premium looks like on the California bond:

On a $25,000 bond

Credit Tier	Annual Premium
Excellent (720+)	$250 – $500
Good (680–719)	$500 – $875
Fair (620–679)	$1,000 – $1,500
Poor (580–619)	$1,500 – $2,000
Bad (Below 580)	$2,000 – $2,500

Premium ranges are based on standard surety industry rates. Your exact rate depends on credit, experience, and the specific surety company. These are annual premiums — the bond itself doesn't cost you the face amount unless there's a claim.

Filing

How to File Your California Bond

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.

Obligee

State of California — Contractors State License Board

Term

Continuous until cancelled

Licensing Authority

Contractors State License Board (CSLB)

Statute

Business & Professions Code §7071.6

What Most Contractors Miss

California-Specific Gotchas

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.

FAQ

Frequently Asked Questions

How much does a California contractor license bond cost? +

For a $25,000 California CSLB bond, contractors with excellent credit (720+) typically pay $250–$500 per year. Good credit (680–719) runs $500–$875. Below 620, expect $1,000 or more. The bond amount is the same for everyone — only the premium changes with credit.

Is the California contractor bond the same for A, B, and C licenses? +

Yes. Business and Professions Code §7071.6 sets a single $25,000 bond for all licensed contractors in California — General Engineering (A), General Building (B), and all Specialty (C) classifications pay the same amount.

What is the Bond of Qualifying Individual and do I need one? +

The Bond of Qualifying Individual (BQI) is a separate $12,500 bond required when your license qualifier is not the sole owner of the business. If you own 100% of your company and you're the qualifier, you don't need the BQI. If someone else qualifies the license for you, the BQI is on top of your $25,000 contractor bond.

When did California raise the bond to $25,000? +

January 1, 2023. SB 607 raised the contractor license bond, the Bond of Qualifying Individual, and the disciplinary bond simultaneously. Before that, the contractor bond had been $15,000 since 2007.

Does CSLB accept any surety company? +

No. The surety company must be admitted by the California Department of Insurance and must issue the bond on the CSLB's approved form. Generic bond forms from out-of-state sureties will get rejected. Most major national sureties are admitted in California, so this rarely blocks contractors in practice.

Can I get a California contractor bond with bad credit? +

Yes, but you'll pay more. At a credit score below 580, expect to pay $2,000–$2,500 annually on the $25,000 bond — roughly 10% of the face amount. Some sureties specialize in substandard credit contractor bonds. The bond itself will still be issued.

NoBro Take

Our Editorial Insight

California is one of the cleanest state requirements in the country. A single bond amount. A clearly written statute. A well-documented obligee form. There's no ambiguity about what you owe.

The ambiguity comes from the brokers. We've seen California contractors quoted anywhere from $180 to $900 per year on the exact same $25,000 bond — same credit, same underwriter, same surety pool. The difference is pure broker markup.

Here's the thing about a simple license bond like California's: the underwriter isn't doing anything complicated. They're running a credit check and issuing a standard form. If you're paying a broker 30% of your premium to facilitate that transaction, you're paying for someone to type your information into a computer for you.

Our advice: if your credit is above 680, there's no scenario where you need a broker for a California contractor bond. Go direct. If your credit is under 620, a broker with relationships at substandard-credit sureties can genuinely add value — but even then, ask what their commission is before you sign anything.

Verified & Sources

The requirements on this page were last verified on 2026-04-07 against the sources below. Bond amounts and regulations can change — always confirm with the CSLB before filing.

Other State Requirements

Washington

2 bond tiers by license type

Oregon

9 bond tiers by license type

Nevada

Bond amount set case-by-case

Browse All States

State Contractor Bonds by Structure

Every state sets its own rules. Here's how all the states we've researched group together — find your state or browse by the structure that matches yours.