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MMBONDING
Flagship · CSLB

California Contractor License Bond

The $25,000 bond every licensed California contractor must carry. We quote it fast, place it even with bad credit, and e-file it with the CSLB for you.

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Key facts
Bond amount
$25,000
Statute
BPC §7071.6
CSLB form
CSLB 13b-1
Filing
24 to 48 business hours

Premium is a percentage of the bond amount, set by underwriting. The figures above are statutory amounts, not what you pay.

Illustration for the Contractor License Bond

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 (0.6% to 15%). With good credit, our best rate is $150 a year, or $275 for two years paid up front. Tougher credit costs more, but is still very placeable. The cost guide has the full table by credit tier.

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:

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.

Bad credit or a prior claim? We place it.

Declined by an instant-issue site does not mean declined everywhere. We shop hard-to-place markets and work with credit challenges. Underwriting still applies.

How we place tough cases
Questions

Contractor License Bond FAQs

Reviewed by Michael Melshenker, CEO. Figures verified against CSLB and CA DOI sources.

What is a California contractor license bond?
It is the $25,000 surety bond every CSLB-licensed contractor must file under BPC §7071.6. It is not insurance for the contractor: it protects consumers, employees, and the state. If the surety pays a valid claim, the contractor reimburses it in full.
How much does a California contractor license bond cost?
From $150 a year with good credit, or $275 for two years paid up front. You pay a premium, not the $25,000 face amount, and personal credit sets it: clean credit lands at that floor, while collections, tax liens, or a prior bond claim push it toward 15% of the bond.
Who requires a contractor license bond, and under what law?
The Contractors State License Board requires it of every licensee under BPC §7071.6 (new, renewing, or reactivating, in every classification). There are no exemptions. It is filed on CSLB form 13b-1, and a license is not active without it on file.
How fast can a contractor license bond be issued?
Most contractor license bonds are quoted and issued the same business day, because underwriting is a credit check rather than a full financial review. The surety then e-files the bond with CSLB; allow 24 to 48 business hours for that filing to post against your license number.
Can I get a contractor license bond with bad credit?
Yes. Credit sets the premium, not eligibility. Collections, judgments, tax liens, a past bond claim, and a thin or absent credit file are all placeable: the rate simply moves toward the upper end of the range. These are placed routinely rather than declined.
Should I buy a contractor license bond from a broker or direct online?
A direct-issue site quotes one carrier's rate. An independent broker holds multiple appointments and shops the same file across them, which matters most when credit is imperfect: carriers price the same applicant very differently. MM Bonding is an appointed California broker (CA DOI #6009105), so one application reaches several markets.
What documents are needed for a contractor license bond?
Usually none beyond the license or application number, business entity details, and consent to a credit check. No financial statements and no work-in-progress schedule. Those belong to contract bonds. This is why a license bond can be issued in minutes and a performance bond cannot.
What happens if I am declined for a contractor license bond?
A decline by one carrier is not a decline by the market. The next step is re-shopping the file with a carrier that underwrites the specific issue, or placing it through a program built for impaired credit. Ask what drove the decline: it is often one correctable item.
How do I renew a contractor license bond, and what if it lapses?
The bond is continuous and renews annually against the license. If premium goes unpaid the surety cancels and notifies CSLB, the license goes inactive, and the record now shows a cancellation that the next surety will see. Renew ahead of the anniversary, not after a notice.
What does a contractor license bond actually cover, and who gets paid?
It pays consumers damaged by a violation of the Contractors State License Law, employees owed wages, and in defined circumstances other contractors. It never pays the contractor. The surety pays a valid claim up to $25,000, then seeks full reimbursement under the indemnity agreement.
How do I verify a contractor license bond is real?
Check the license record on the CSLB's own website: an active bond shows the surety's name, the bond number, and the effective date. Verify there rather than against an emailed certificate: a PDF on its own proves nothing about what is currently on file.
What is the difference between a contractor license bond and liability insurance?
A bond guarantees an obligation to someone else, and the contractor repays every claim it pays. Liability insurance is bought to protect the contractor, and the insurer absorbs the loss. “Bonded and insured” means both are in force; neither one substitutes for the other.

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