California Contractor's Judgment Bond
Get a contractor’s license through this bond!
What is a California Contractor's Judgment Bond?
This bond is required of every person applying for, renewing, or reactivating a contractor’s license who has been found to have failed or refused to pay the following:
- A contractor
- Materials supplier
The aforementioned license applicant must file this bond with the California Contractors State License Board of the Department of Consumer Affairs.
This bond will serve as a guarantee regarding the payment of the unsatisfied final judgment or judgments.
A Contractor's Judgment Bond will be in addition to a Contractor’s License Bond. This requirement is in pursuance of Section 7071.17 of the California Business and Professions Code.
How does a California Contractor's Judgment Bond work?
A bond is a legal contract with three parties: Principal, Obligee, and the Surety.
The Principal is the contractor, the Obligee is the State of California, and the Surety is the guarantor of the Principal.
This bond will serve as an assurance to the California Contractors State License Board of the Department of Consumer Affairs and the Obligee that the person who has been harmed will be eligible to receive compensation if the Principal fails to pay the amount of all unsatisfied judgments that have been entered into the Principal’s license.
Judgment can also include “any final arbitration award where the time to file a petition for a trial de novo or a petition to vacate or correct the arbitration award has expired, and no petition is pending.”
If the Principal fails to pay the judgments, the Obligee will file a claim against this bond. The Surety will pay the claim on behalf of the Principal; however, the Principal must indemnify the Surety after the payment has been made.
How much does a California Contractor's Judgment Bond cost?
The bond cost will start at %0.5 of the bond amount. Bond cost or 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. The bond amount will typically be equal to the amount of the judgment or judgments.
Once you have determined your bond amount, you can find out what your bond premium will be by claiming your FREE SURETY BOND QUOTE HERE!
How can I get a California Contractor's Judgment Bond?
STEP 1: Bond Application
You need to submit a bond application to us. If you’re ready to apply now, you may do so HERE!
STEP 2: Underwriting
We will ask you for a couple of important information needed for the bond. This will include your financial history, business performance history, and your credit score. An underwriter will carefully evaluate all those.
STEP 3: Bond execution
You’ll be asked to sign an indemnity agreement once the underwriting process is done. After that, the bond will be issued and sent to you!
Get this bond in an instant. APPLY HERE!