Bonds
CONTRACTOR LICENSE BONDS
WHAT IS A SURETY BOND?
As a condition of licensure, contractors are required to post some form of security deposit with the Contractors State License Board (CSLB). Surety bonds (also known as contractor's license bond), are commonly used for this purpose. But cash or certificates of deposit may also be posted.
A surety bond is a contract in which a surety company promises the State of California that the contractor will comply with the provisions of the Contractor's State License Law (CSLL). (Chapter 9 of Division 3(commencing with section 7000) of the Business and Professions Code. Generally, the contractor's obligation is to not commit any violations of the Contractors' State License Law that are grounds for disciplinary action against the license. The law sets forth the specific violations which the bond will cover. If the contractor does not comply with the conditions of the bond, a consumer and/or an employee may file a claim against the bond. (B&P Code Section 7071.5)
A surety bond should not be confused with an insurance policy as there are important distinctions between the two. One important distinction is that the contractor remains liable for his or her own obligation, and must repay the surety bonding company for losses incurred by the surety bonding company as a result of the contractor's actions.
WHAT IS THE AMOUNT OF THE REQUIRED BOND?
The amount of the Contractor's License Bond is $12,500. Most qualifiers carry a $12,500 bond.
The bond amount is not per job – it is the amount available for all the jobs a contractor takes on during the life of the bond. In addition, the CSLB may require a separate bond for contactors who have been disciplined, and the amounts of these bonds vary.
Once the bond has been depleted, a contractor must purchase a new bond for the license to remain in effect.
Source: A Guide to Contractor License Bonds: www.cslb.ca.gov
WHO NEEDS TO HAVE A BOND?
All active contractor licenses must file a license bond or post some form of security deposit with the Contractor State License Board (CSLB).
WHERE TO GET A BOND?
For your convenience, you can purchase a bond through our affiliate company, Construction Insurance Agency. CIA provides competitive rates and the quality and expertise that come from providing these services to contractors for over 20 years. Construction Insurance Agency works with numerous bonding companies to provide the best service, coverage and pricing to fit the contractor's needs.
Construction Insurance Agency, Inc.,
14664 Victory Boulevard Van Nuys, CA 91411
800 970-6248
CONSTRUCTION INSURANCE AGENCY, INC.
All Licenses except Pool (C53) and Roofing (C39)
Rates:
New contractors with less than 4 years holding a license:
1 year $144.00
2 years $199.00
*Preferred rates:
1 year $107.00
2 years $163.00
*Preferred Rates apply only to those license holders who have been licensed for more than 4 years with the license remaining in good standing and without infractions during that time.
Swimming Pool (C53) and Roofing (C39) License Bonds
Rates:
C53 Pool Bonds:
Available upon request*
C-39 Roofing Bond:
Available upon request*
*Based on individual's credit.
Please call for an application or stop into one of Contractors State License Service's 30 plus locations to pickup and complete an application for contractor bonding.