California Contractor Bond Requirements: What You Need to Know

What Is a CSLB License Bond?

A California Contractors State License Board (CSLB) bond is a financial guarantee that a contractor will comply with state licensing laws while working on a job. Filing a $25,000 CSLB surety bond is a requirement before a contractor business can receive or renew its CSLB license.

Who Needs a California CSLB Contractor Bond?

Every individual contractor or contractor-qualifying individual working in California needs to file a $25,000 CSLB surety bond to establish or maintain their licensed status. Contractor companies structured as LLCs need a $100,000 CSLB bond to provide additional protection for employees.

Key Bond Requirements

The contractor license bond must meet the following requirements:

  • The bond must be written by a surety company licensed through the California Department of Insurance.
  • The bond amount is $25,000 as of January 1, 2023.
  • The business name and license number on the bond must exactly match the CSLB’s records.
  • The bond must be signed by the attorney-in-fact for the surety company.
  • The bond must be written on a form approved by the Attorney General’s Office.
  • The bond must be received at the CSLB’s Headquarters Office within 90 days of the bond’s effective date.

How to Obtain a California Contractor Bond

You can apply for a California contractor bond by submitting an online request form with a surety company. You’ll need to provide information such as your license classification, company name and address, and license number (for renewals) or application fee number (for new applicants).

Filing Your CSLB Contractor Bond

Your surety provider will file your contractor’s license bond directly with the CSLB on your behalf. Contractors do not file their own surety bonds with the CSLB.

Purpose of Contractor Bonds

Contractor bonds protect consumers who could be harmed by defective construction or other license noncompliance, as well as any unpaid employees, subcontractors, or suppliers. If a contractor breaks the bond terms, the surety company will pay valid claims to harmed parties up to the full bond amount, which the contractor must then reimburse in full

Remember, staying compliant with California’s contractor bond requirements is crucial for maintaining your license and operating legally in the state. Always verify the most current requirements with the CSLB, as regulations may change over time.

Disclaimer: The information provided in this article is for general informational purposes only and does not constitute legal advice. Laws and regulations regarding contractor bonds in California are subject to change. Readers are strongly encouraged to consult with the California Contractors State License Board (CSLB) or a qualified legal professional for the most current and accurate information regarding California contractor bond requirements.

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About CSLS

Contractors State License Service (CSLS) is the largest school in California devoted to the Construction professional. For over 23 years, CSLS has helped its students pass the exam to become licensed contractors in the State of California, licensing more students than any other school. From our main offices in Southern California, CSLS operates over 25 locations with full-service support and classrooms. We have grown to this extent by providing quality, professional services. In comparison, this provides 7 times the number of convenient locations than the second largest contractor school. Contractors State License Services is one of the only contractor schools in the state that is run by educators, not lawyers or people mostly interested in the bonding and insurance business. Contractors State License Services formerly operated under the oversight of the State of California's Bureau for Private Post Secondary and Vocational Education. As of January 1 2010, the new Bureau for Private Postsecondary Education (BPPE) came into existence replacing the BPPVE. CSLS now operates under the provisions of the California Private Postsecondary Education Act of 2009 (CPPEA), Article 4 Section 94874(f). Our Mission is simple; We can help you pass your California Contractors License Exam. Celebrating our 25th year, CSLS has helped over 120,000 students pass the California contractor licensing exam to become licensed contractors in the State of California. Additionally, we offer complete home study and online contractor’s license programs to help you pass your California contractors license exam. CSLS offers licensing classes for all types of contractor licenses, including General Engineering Contractor, General Building Contractor, Specialty Contractor, Insulation and Acoustical Contractor, Framing and Rough Carpentry Contractor, Cabinet, Millwork and Finish Carpentry Contractor, Concrete Contractor, Drywall Contractor, Electrical Contractor, Elevator Contractor, Landscaping Contractor, Warm-Air Heating, Ventilating and Air-Conditioning Contractor, and many others. For a complete list of contractor licenses, visit www.MakeMeAContractor.com and tuned for more informative posts.