The California Contractors State License Board (CSLB) requires every licensed contractor in the state to keep a $25,000 contractor license bond on file. Without it the CSLB will not issue, renew, or reactivate a license, and a bond that lapses suspends the license automatically. For Surety Insurance Agency has written surety bonds for more than thirty years. Apply online in about five minutes, get approved the same day in most cases, and we file the bond electronically with the CSLB in Sacramento so your license stays active.
A contractor license bond is a financial guarantee that a contractor will adhere to California’s licensing laws while performing work. It is a requirement set by the CSLB for all licensed contractors. The bond serves to protect consumers, employees, and suppliers from financial losses due to a contractor’s failure to meet legal obligations or contractual agreements.
Bonds are priced based on the amount of the bond, your credit history, and your financial condition. Premium for the standard $25,000 bond limit is typically $250 to $500 per year and will vary based on personal credit history and bond limit. Low personal credit scores, liens, and judgments may trigger a higher premium or, in some cases, a decline.
A California contractor license bond is an agreement between three parties:
The surety company reviews a contractor’s credit history and financial condition to determine the bond premium. Owners with low personal credit scores can still get a California Home Improvement Contractor License Bond, but the cost may be higher and collateral (a deposit with the bonding company) may be required. The surety may decline depending on your overall credit score and financial condition even with collateral.
Ready to see the full process? Read how to get a California contractor license bond step by step.
Questions? Call (877) 328-1230 · Monday–Friday 9 to 5 · Apply online 24/7
A contractor license bond is a financial guarantee that a contractor will adhere to California's licensing laws while performing work. It is a requirement set by the California Contractors State License Board (CSLB) for all licensed contractors. The bond protects consumers, employees, and suppliers from financial losses due to a contractor's failure to meet legal obligations or contractual agreements.
Bonds are priced based on the amount of the bond, your credit history, and your financial condition. Premium for the standard $25,000 bond is typically $250 to $500 per year. Low personal credit scores, liens, and judgments may raise the premium or cause the surety to decline the request.
It is an agreement between three parties. The obligee is the CSLB, the licensing authority that mandates the bond. The principal is the contractor who must obtain the bond as protection for their customers. The surety is the company that issues the bond and pays valid claims; the contractor then repays the surety.
Yes, in most cases. The surety reviews your credit history and financial condition to set the premium. Contractors with low credit scores can usually still be bonded, but the cost is higher and collateral may be required. The surety may decline depending on your overall credit and financial condition.
$25,000 for all license classifications, effective January 1, 2023 under Senate Bill 607. Contractors whose qualifier owns less than 10% of the business also need a $25,000 Bond of Qualifying Individual, and LLCs need an additional $100,000 LLC employee/worker bond.
The CSLB automatically suspends your license when a bond is cancelled or expires without replacement. A suspended contractor cannot legally contract for work of $500 or more and may lose the right to collect payment. Filing a new bond reinstates the license.
We issue the $25,000 CSLB contractor license bond for home improvement contractors in every county in California, from the Oregon border to San Diego. Choose your area for local details: Los Angeles Contractor License Bond, San Diego Contractor License Bond, San Jose Contractor License Bond, San Francisco Contractor License Bond, and Fresno Contractor License Bond. Not in one of those cities? The bond is the same statewide – see how to get your CA contractor bond or apply online right now.