CONTRACTOR'S LICENSE BONDS
About Contractors Bonds
The Contractors State License Board requires all licensed California contractors to obtain a $15,000 license bond, or bond equivalent as a condition for being licensed. The bond is for the benefit of a contractors employees or customers if they are financially harmed as a result of a contractors actions.
Depending on how a contractor is organized, a bond of qualifying the individual may also be required. Contractors organized as an LLC will also require a $100,000 LLC bond in addition to a $15,000 license bond.
A contractors license bond for California is a type of commercial surety bond that is a three-party contract between the contractor (the principle), the entity requiring the bond called the obligee (The State of California, Contractors State License Board) and the surety (the insurance company writing the bond). If a contractor's customer or his employees are financially harmed as a result of a state law violation, then a bond payout may occur. However, before a surety makes a payout on a bond, they will investigate any claim and its validity. If a payout does occur, a contractor is responsible for repaying the surety the amount of the bond claim plus legal expenses, unlike insurance.
FORMS
- Contractors License LLC Empl. Worker
- Contractors License
- Pool Contractors License Bonds*
- Roofing Contractors License Bonds*
Please download the fillable PDF application form above, and fax it to us at 619-670-5026. Please feel free to give us a call at 619-670-1136 if you need assistance. Thank you.
Links to Other Pages
- Disciplinary Bonds >>
- Performance and Payment Bonds >>
- Small Contract and Performance Bonds >>
- Subdivision Bonds >>
*NOTE: Pool Contractors Bonds and Roofing Contractors Bonds are underwritten separately because these two categories are higher risk.