Contractors License Bond California

Contractors License Bond California Requirements

Before you can get your Contractors State License Board (CSLB) license as a contractor, you must be issued a contractor’s bond. The bond is required to protect consumers from faulty construction work that results in costly repairs. It is also to protect your employees who may not be paid as a result of this. You have the option to purchase the $25,000 bond (as of 2023) or to pay a $25,000 cash deposit in lieu of the bond.

The requirements for a contractor’s bond in California is as follows:

• The bond must be in written by a surety company, licensed through the California Department of Insurance
• The business name and license number on the bond must correspond with the business name and license number in the CSLB’s records
• The bond must have the signature of 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 effective date of the bond

In addition to this bond, LLC’s may have to purchase a $100k LLC bond in order to initiate or maintain licensure.

Construction Contract Bond Services

Understanding the nuances of the construction industry — and how the surety world views it — is the difference between a successful surety management group and a typical bond placement agency. With decades of construction and surety industry experience, we see the hurdles before they happen and find solutions before the need arises.

We have specialty programs that support contractors at every stage of growth, from emerging businesses to large-cap operations. No matter where you are in your journey, we have a program to match.

Small Contracts (Up to $250,000)

For smaller or harder-to-place bonds, we can work with credit scores as low as 575. We believe credit should not be the only factor in evaluating a risk — your full picture matters.

Mid-Range Contracts (Up to $400,000 single / $800,000 total program)

This program is also primarily credit-driven, typically requiring a score of 650 or better. However, if you don’t meet that threshold, there are still solutions available — just give us a call.

Growing Contractors ($400,000–$1MM single / up to $1.5MM total program)

This is an exciting class of business. For some it’s smaller highly profitable and easily managed business and for others it’s a big step toward the next level. With a limited financial presentation we will help you with, we have numerous standard and hard to place options in this category.

Large & Complex Programs (Over $1MM or Any Limit)

When getting a bond, especially from a new market, it can be overwhelming. There is a lot of information and the way it is presented needs to be perfect in order to maximize your potential relationship with the surety. Don’t worry, we have you covered.

California Contractors License Bond Application

Fill out our Bond Request Form to hear from our dedicated account managers. They’ll work with you to to review information on our additional bond markets and to learn more about your bonding needs.