What is a California Contractor License Surety Bond?
The California Contractors State License Board (CSLB) requires California Contractor License Surety Bonds before a license is issued, reactivated or renewed. This bond ensures the contractor’s compliance with the stipulations noted in Division 3, Chapter 9 of the California Business and Professionals Code.
Contractors who have previously faced disciplinary action due to violations must also obtain a Disciplinary Contractor Surety Bond before they can conduct work in California.
The California Department of Industrial Relations’ Division of Labor Standards Enforcement requires farm labor contractors to obtain a separate Farm labor Contractor Surety Bond.
Contractors with LLC business entities are required by the state to have a LLC Employee/Worker Surety Bond in addition to the contractor bond.
How does a California Contractor License Surety Bond work?
California Contractor License Surety Bonds are filed for the benefit of consumers who may be damaged as a result of defective construction or other license violations by the contractor, and for the benefit of employees of the contractor who have not been paid wages that are due to them. If an individual is harmed by the actions of the contractor, they may file a claim with the surety company for relief.
If the claim is valid, the surety will pay up to the penal sum of the bond to resolve the claim. The contractor is then required to reimburse the surety for all monies paid out, including any attorney fees incurred by the surety in the defense of the contractor.
What are the bond amounts required by the state?
- Contractor License Bond
- $15,000 Bond
- Swimming Pool Contractor License Bond
- $15,000 Bond
- Roofing Contractor License Bond
- $15,000 Bond
- Contractor License Qualifying Individual Bond
- $12,500 Bond
- Contractors Disciplinary Bond
- Amount varies and is set by the CSLB
- LLC Employee/Worker Bond
- $100,000 Bond
- Farm Labor Contractor Bond (amount is based on annual payroll of all employees)
- $25,000 Bond – Payrolls up to $500,000
- $50,000 Bond – Payrolls of $500,000 to $2,000,000
- $75,000 Bond – Payrolls greater than $2,000,000
What are the terms of the bond?
California Contractor License Surety Bonds are filed with the California Contractors State License Board and are renewed on an annual basis by the surety company. The bond shall run concurrently with the license period for which the license is granted and has a continuous term that will remain in force and effect until canceled by the surety. The surety can cancel the bond at anytime by giving thirty (30) days written notice to the CSLB prior to the effective cancellation date. The aggregate liability of the surety will not exceed the penal sum of the bond in any event.
How do I get a California Contractor License Surety Bond?
The first step is to complete our quick online application for your free, no obligation bond quote. Submission takes only five minutes, and our underwriting staff will be in contact with you within a couple of hours with pricing. If you prefer to speak with our knowledgeable staff, please call 1-866-722-7837 and one of our Underwriters will assist you in applying for your bond.
After you receive approval, you must sign an indemnity agreement with the surety and provide payment for your bond premium. In most cases, we can issue bonds the same day we receive your signed documents and payment.
How much does a California Contractor License Surety Bond cost?
California Contractor Surety Bonds are subject to underwriting and the price you will pay depends on a review of your personal credit report. Pacific Surety is proud to offer a variety of approvals, regardless of credit, with rates starting at $99 annually for well-qualified applicants. It typically takes just a few hours from quote to issuance of the bond, and we have the ability to beat any competitors pricing. If you have specific questions, please feel free to contact our knowledgeable staff.
Can I get a California Contractor License Surety Bond with bad credit?
Pacific Surety offers a wide range of approvals, regardless of credit, for California Contractor License Surety Bonds. With our strong surety relationships, we have the ability to approve 99% of applicants, regardless of how bad their credit is. Our knowledgeable underwriting staff will work with you to ensure you receive the lowest possible pricing for your bond. To see what rate you will qualify for, please complete our quick online application for your free, no obligation price quote.
What do I need to apply for a California Contractor License?
Anyone who wishes to become a licensed contractor must submit a completed application to the California Contractors State License Board and provide the following:
- Nonrefundable $330 Application Fee
- $200 Initial License Fee
- Certification of Work Experience
- Fingerprint Card
- Workers’ Compensation Insurance (Unless The Contractor Has No Employees)
- Surety Bond
After an application has been accepted by the CSLB as complete (also known as “posted”), the applicant will be sent instructions on the process for obtaining and submitting their fingerprints, as required by law. Incomplete applications will be returned to the applicants for correction or completion, and can delay your license. Delays can last several weeks or even months and may result in the application being deemed abandoned and becoming void, with the application fee being forfeited.