What the contractor license bond is
The California contractor license bond is a $25,000 surety bond required of every contractor licensed by the Contractors State License Board (CSLB). It is mandated by BPC §7071.6 and filed on CSLB Form CSLB 13b-1. The amount was raised to $25,000 by SB 607, effective January 1, 2023.
A surety bond is not insurance for you. It is a three-party guarantee: you (the principal), the CSLB and public (the obligee and beneficiaries), and the surety. It protects consumers and your employees against certain violations of the contractor law. If the surety pays a valid claim, you reimburse the surety.
Who needs one
Every CSLB-licensed contractor, with no exemptions. You must have an active bond on file to:
- Issue a brand-new contractor license
- Renew an existing active license
- Reactivate a license that has gone inactive
- Maintain a license in good standing year to year
It applies whether you are a sole proprietor, a corporation, or an LLC. If you are switching your business structure (a sole proprietor moving to an LLC, for example), your bonding requirements change too, and we will walk you through it.
What it costs
You pay a premium, not the $25,000 face amount. The premium is an annual percentage driven mostly by your personal credit, typically a small percentage of the bond amount (1% to 15%). Strong credit can start in the low hundreds of dollars per year. Tougher credit costs more, but is still very placeable.
Because we are a broker, we shop your file across multiple markets and quote the most competitive rate you qualify for, instead of a single take-it-or-leave-it number.
The other bonds contractors often need
The license bond is the baseline. Depending on your license structure, you may also need:
- A Bond of Qualifying Individual ($25,000) when your license is qualified by an RME, or by an RMO owning less than 10% of the company.
- The LLC employee/worker bond ($100,000) if you are licensed as an LLC, on top of the license bond.
- A disciplinary bond if you are reinstating a license after a CSLB disciplinary action.
How filing works
Once you accept your quote and pay the premium, your surety e-files the bond directly with the CSLB. Electronic filings typically post within 24 to 48 business hours, and many qualifying applicants are bonded the same business day. We handle the paperwork and confirm the filing for you.
Contractor license bonds by metro
We bond contractors across California. For local guidance, see the contractor license bond in Los Angeles, Orange County, and San Diego, or browse all locations.