California Contractor License Bonds

February 18, 2021

Contractor license bonds protect the public from financial harm resulting from violations of licensing law committed by the contractor and their employees.

The State of California requires contractors to obtain specific surety bonds correlating with their license type. We have compiled comprehensive guides on these bonds to assist insurance agents in obtaining California contractor license bonds for their customers. Below are all of the contractor licensing bonds required by the State of California:

• California Contractor License 

  • Average Cost: $102 – $450 per year, based on the business owner’s credit
  • Bond Amount: $15,000
  • Who Needs It: All individuals and businesses seeking to obtain a contractor license in the State of California

• California Contractor Disciplinary

  • Average Cost: 3% – 8% of the bond amount per year, based on the business owner’s credit and the type of disciplinary action
  • Bond Amount: $15,000 – $150,000, determined at the discretion of the CLSB
  • Who Needs It: Contractors in California who have had their contractor license suspended due to disciplinary action

• California LLC Employee Worker

  • Average Cost: $1,354 – $5,000 per year, based on the business owner’s credit and financial standing
  • Bond Amount: $100,000
  • Who Needs It: All contractors operating an LLC in the state of California

• California Bond of Qualifying Individual

  • Average Cost: $85 – $375 per year, based on the applicant’s credit standing
  • Bond Amount: $12,500
  • Who Needs It: Required for the qualifying individual listed on a California Contractor License who is not an owner of the business

How Can an Insurance Agent Obtain a Surety Bond for Their Customer?

BondExchange makes obtaining a surety bond easy. Simply login to your account and use our keyword search to find the “contractor” bond in our database. Don’t have a login? Enroll now and let us help you satisfy your customers’ needs. Our friendly underwriting staff is available by phone (800) 438-1162, email or chat from 7:30 AM to 7:00 PM EST to assist you.

At BondExchange, our 40 years of experience, leading technology, and access to markets ensures that we have the knowledge and resources to provide your clients with fast and friendly service whether obtaining quotes or issuing bonds.

What Other Insurance Products Can Agents Offer Contractors in California?

California requires all contractors with employees to obtain worker’s compensation insurance and LLC owners to obtain liability insurance. Bonds are our only business at BondExchange, so we do not issue any form of insurance, but our agents often utilize brokers for this specific line of business. A list of brokers in this space can be found here.