California Bond of Qualifying Individual
The financial guarantee you need for your business! Apply today!
What is a California Bond of Qualifying Individual?
This bond is required of qualifying individuals (as stated in Sections 7068 and 7068.1 of the California Business and Professions Code) who are not any of the following:
- A general partner
- A joint licensee
A California Bond of Qualifying Individual will serve as a legal promise regarding the compliance of the applicant to the relevant provisions of the California Business and Professions Code and to the rules and regulations set forth by the California Contractors State License Board of the Department of Consumer Affairs.
A responsible managing officer of a corporation who owns 10% or more of the voting stock of the corporation and a qualifying individual for an LLC who owns 10% membership interest in an LLC is not required to file this bond.
This bond cannot be combined with a contractor’s bond. This requirement is in pursuance of Section 7071.9 of the California Business and Professions Code.
How does a California Bond of Qualifying Individual work?
This is an agreement among three parties:
Principal – qualifying individual who is not a proprietor, a general partner, or a joint licensee
Obligee – State of California
Surety – surety bond provider
Through this bond, the Surety is assuring the Obligee that the Principal will fulfill his or her lawful obligations. In the event of a default committed by the Principal, the Obligee will be eligible to file a claim against the bond.
The claim must be made on these specific periods:
- The violation happened within 2 years after the license has expired.
- Within 2 years from the time the license was inactivated, revoked, or canceled.
- Within 6 months after the date of the nonpayment of fringe benefits was discovered.
- Within 2 years after the fringe benefit contributions were due.
If the Principal cannot the settle the claim, the Surety will step in and do it on behalf of the Principal. Once the Obligee has been paid, the Surety will seek reimbursement from the Principal.
How much does a California Bond of Qualifying Individual cost?
The bond premium will depend on the applicant’s credit score. Applicants with excellent credit scores will be eligible to pay a bond premium of less than 1% of the bond amount.
The bond amount is $12,500.
How can I obtain a California Bond of Qualifying Individual?
STEP 1: Apply for this bond
If you’re ready to apply now, you may do so HERE!
STEP 2: Underwriting
Our expert underwriter will ask you a few important information about your financial history, business performance history, and your credit score. He will then carefully evaluate all these.
STEP 3: Bond execution
Once the underwriter is done with the prequalification process, you’ll be asked to sign the indemnity agreement. After that, the bond will immediately be issued and sent to you!