California Contractor Bond

A contractor bond is required by the State of California as a prerequisite for any licensed contractor to legally conduct business in California.

Please note that the following information is related to contractor’s license bonds. If you are a contractor seeking information on obtaining contract surety bid and payment/performance bonds, please visit our contract bond page.
  • The state of California requires contractor’s license bonds for certain contractors to legally operate in the state of California. The bond generally ensures that the contractor will comply with all required codes and laws. The State of California, or another local agency, will be named as the obligee on the bond, but a contractor’s license bond must be obtained from an insurance company licensed to write surety bonds in California.

    The bond is for the benefit of consumers who may be damaged due to license violations such as defective construction by the licensed contractor as well as for the benefit of employees owed unpaid wages by the licensed contractor.

    The business name and license number on the bond have to match exactly with the business name and license number on CSLB’s records. The bond must also have the signature of the attorney in fact for the surety company and be written on a form approved by the Attorney General’s Office. It must be received by the CSLB within 90 days of the bond’s effective date.

     

  • Contractors applying for an active contractor license, reactivation of a contractor license, or maintenance of an actively renewed license are required to obtain this bond.

  • A $15,000 surety bond is required by the State of California from a surety company licensed through the California Department of Insurance.

    A $12,500 Bond of Qualifying Individual may also be required for the issurance of an active license, reactivation of a license, and maintenance of actively renewed license if the license is qualified by a Responsible Managing Employee or if the license is qualified by a Responsible Managing Officer who does not own at least 10% of the voting stock of a corporation. If that Responsible Managing Officer owns 10% or more, they must complete and submit a Bond of Qualifying Individual Exemption Certification.

    If a license has more than one Responsible Managing Employee or Officer qualifying the license, each must individually comply with these requirements for the Bond of Qualifying Individual.

    If a license has been revoked due to a violation of the California Contractors’ License Law, a disciplinary bond for not less than $15,000 nor greater than ten times the amount of the contractor bond must be filed.

  • Colonial offers the direct and digital way to obtain a California contractor bond. We are the insurance company — which means no agent, no broker, and no middleman. We make it easy to obtain your bond instantly. The steps are simple — get a quote online, fill out your information, and enter your payment method. Print your bond from your home or office. It’s that simple!

  • A California contractor bond is reasonably priced and easy to obtain. You may notice that with other insurance agents and middlemen companies, your premium rate will fluctuate and include additional hidden fees and costs. Colonial offers our lowest possible rate. Premium is based on the amount of the bond required by the applicable government agency.

  • It is important to understand how surety bonds work, and who is the insurance company issuing your bonds. It is easy to obtain a California contractor bond when you deal direct with a quality insurance company licensed to write surety bonds. Colonial is an A (Excellent) rated insurance company by A.M. Best, that has been incorporated since 1930. We are Treasury listed, and licensed and admitted in all U.S. states and territories.

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