California Contractor's Disciplinary Bond
Know what this surety bond is for and how to easily get one!
What is a California Contractor's Disciplinary Bond?
The California Contractors State License Board of the Department of Consumer Affairs requires certain persons to procure this bond in order to continue to use their contractor’s license. This bond will ensure that the bonded person will conform to the provisions of Section 7000 of the California Business and Professions Code.
The following persons are required to obtain this bond:
- A person whose license has been suspended or revoked as a result of disciplinary action.
- An officer, director, manager, partner, or member of the personnel of record of a licensee who knows or participated in an act that caused the disciplinary action against the licensee.
- A business entity, firm, or association of which an existing or new officer, director, manager, partner, qualifying person, or member of the personnel of record has had a license suspended or revoked as a result of disciplinary action.
- A business entity, firm, or association of which a member of the personnel of record committed an act which cause for disciplinary action that has resulted in suspension or revocation of the license, and who had knowledge of or participated in the act or omission which was the cause for the disciplinary action.
This requirement is in line with Section 7071.8 of the California Business and Professions Code.
How does a California Contractor's Disciplinary Bond work?
This bond is for the protection of the Obligee (State of California). An Obligee can be any person within the state who suffered damages due to the misconduct of the Principal (licensee and/or the person who committed the misconduct).
The Surety will extend its credit to the Principal through a guarantee. The Surety will assure the Obligee that the Principal will comply with the relevant laws, rules, and regulations. The Surety will ensure that the Obligee will be paid in case the Principal commits a misconduct.
How much does a California Contractor's Disciplinary Bond cost?
The bond premium will range from 0.5% to 15% of the bond amount. Your bond premium will depend on your credit score.
The bond amount will be determined by the California Contractors State License Board of the Department of Consumer Affairs. It should not be less than $15,000, but not more than 10 times the amount of the Contractor’s Bond.
How can I get a California Contractor's Disciplinary Bond?
STEP 1: You must first apply for this type of surety bond. If you are ready to do that now, you may APPLY HERE!
STEP 2: An underwriter will take a thorough look at the following:
- Your financial strength
- Your job performance history
- Your credit score
STEP 3: After the underwriting process is done, you will be asked to sign an indemnity agreement. After that, the bond will be issued and sent to you!
Fast bond approval! APPLY FOR THIS BOND HERE!