California Contractor License Surety Bonds

What is a California Contractor License Surety Bond?

California Contractor License Surety Bonds are required by the California Contractors State License Board (CSLB) 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 an additional 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 whose business entity is an LLC are required by the state to have a LLC Employee/Worker Surety Bond in addition to the Contractor License Surety 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 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. 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.

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 renew annually. The bond is continuous and will remain in force unless cancelled by the surety company. The aggregate liability of the Surety will not exceed the penal sum of the bond.

How do I get a California Contractor License Surety Bond?

The first step is to complete our quick online application for your free bond quote. It only takes about five minutes to complete, and one of our underwriters will be in contact with you within a couple of hours with your pricing.

After you receive approval, you will sign an indemnity agreement with the surety and provide payment for your bond premium. In most cases, we can issue bonds the same day as we receive your signed documents and payment.

How much does a California Contractor License Surety Bond cost?

California Contractor License 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 any specific questions, feel free to contact our knowledgeable underwriting staff.

Additional Resources

Surety Bond Name

Bond Limit

Contractor License Surety Bonds – California