San Diego contractors are required to carry a $25,000 license bond to maintain an active license with the CSLB.
Purpose of the Contractor License Bond
A San Diego Contractor License Bond is a surety bond required by the California Contractors State License Board (CSLB) to protect consumers and employees from financial harm caused by defective work, contract violations, or unpaid wages. The bond is a financial guarantee, not insurance for the contractor, and ensures that claims can be paid without the injured party pursuing the contractor directly. If a claim is paid, the contractor must reimburse the surety company for the full amount plus any legal costs.
Bond Requirements
Amount: $25,000 for all contractors as of January 1, 2023, per Senate Bill 607.
Form: Must be written on a form approved by the Attorney General and signed by the surety company's attorney-in-fact.
Filing: The bond must be received at the CSLB headquarters within 90 days of its effective date.
Eligibility: Required before issuing, renewing, or reactivating a license.
Surety: Must be issued by a company licensed through the California Department of Insurance.
Additional Bonds
Bond of Qualifying Individual: Required if the license is qualified by a Responsible Managing Employee (RME) or a Responsible Managing Officer RMO) who owns less than 10% of the corporation.
Maintaining the Bond
The bond must remain active continuously; lapses trigger automatic license suspension.
Key Considerations
The bond protects the public and employees, not the contractor.
Contractors are responsible for reimbursing the surety if a claim is paid.
Understanding bond requirements is critical to avoiding license suspension and ensuring compliance with CSLB regulations.
For more information, contractors can consult the CSLB’s official bond requirements page or contact a licensed surety company to obtain or maintain their bond
San Diego blends a coastal lifestyle with steady residential construction, from the historic craftsman homes surrounding Balboa Park and the San Diego Zoo to the newer neighborhoods spreading east toward El Cajon and north into Carlsbad and Oceanside. The Gaslamp Quarter, USS Midway Museum, and Petco Park anchor a downtown that has added thousands of condo units in the past decade, while La Jolla, Point Loma, and Coronado keep high-end remodelers in demand. Older housing stock in North Park, Normal Heights, and Old Town means constant work in roofing, plumbing, electrical, window replacement, and room additions, and the region's ADU boom has brought many new contractors into the market. Cabrillo National Monument and Mission Bay may be the postcards, but San Diego County's 3.3 million residents are the customers. Every one of those jobs requires an active CSLB license backed by a $25,000 bond, and we can issue your San Diego contractor bond online today.