What is a California Contractor License Bond?

Before an individual can be issued a contractor’s license, reactivate an inactive license, or renew a license, he or she must purchase a California contractor license bond. This bond is designed to protect the consumers against losses resulting from defective construction or other license law violations.

 

Who Needs a California Contractor License Bond?

Most consumers know that they should only work with contractors who are properly licensed. To obtain and maintain that license, the California State Contractors License Board requires a $15,000 bond (before January 1, 2016, this bond was $12,00).

 

Additionally, the California State Contractors License Board or other agencies may require other bonds for some contractors. Some contractors may be required to post a contractor’s disciplinary bond, which is decided on a case-by-case basis.

 

The Department of Industrial Relations’ Division of Labor Standards Enforcement requires farm labor contractors to post $25,000 surety bonds. Others may be required to post a $12,500 qualifying individual bond before being able to conduct business in the state.

 

Why Do I Need a California Contractor License Bond?

A California contractor license bond ensures that the principal (or contractor) will comply with the Business and Professions Code (Division 3, Chapter 9). If the contractor does not follow the law resulting in harm to a person or property, the harmed individual can make a claim against the bond, up to the limits of the bond.

 

The principal is then responsible for making repayment to the surety company. California contractor license bonds do not expire and remain valid until terminated or canceled.

 

How Much Does a California Contractor License Bond Cost?

The California State Contractors License Board requires contractors to carry a $15,000 bond as long as he or she has an active contractor’s license. California contractor license bonds are subject to underwriting, and therefore are dependent on the credit score of the contractor.

 

Those with good credit may find premiums as low as 1% of the bond.

 

Get Started Today!

To receive a contractor’s license, you must first secure a California contractor license bond. Don’t delay your application. Begin by getting your quote today.

 

Get started today – Click Here for a California contractor license bond quote.