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California Contractors License Bond

If you need a California Contractors License Bond you have come to the right place. Contractors bonds, for the most part, are a simple, easy and usually inexpensive. In California, a contractors bond is required by law to obtain, Renew, or reactivate a contractorís . By having your contractorís you will not only be able to perform jobs above $500, but inspire greater confidence to the potential customer or contractor of whom which you will be doing any work for.

In California there are over 300,000 active contractors that have had to undertake the same steps that you are about to embark on.

Contractors bond in California will almost always be valued at $12,500. The bond amount is specified in accordance with the California State board and is used to protect both the contractor and the client. The bonds sole purpose is to protect consumers who may have been hurt, or otherwise damaged as a result of subpar or defective construction or violations done to the person or personís property. Contractors bonds also work as a guard for any employee that have not been paid by the employer (the Contractor) and is due to them.

California has some of the more strict rules and guidelines when it comes to a proper contractorís bond filing. Here are a few of the requirements:

  • The bond cannot be written by any surety or company not licensed by the Department of Insurance (So be careful when choosing a Broker or Insurance company. Ask them if they meet the criteria that the Department of Insurance Requires.)
  • The Contractor Bond cannot be in any amount less than $12,500 (If your Insurance Representative is in any way unsure about this figure, itís time to find a new agent for your business Insurance needs)
  • The Business name and contractorís number must be identical with the information listed with the California State Board. (So it's Extremely Important that your insurance guy has your business information correct on the bond submission. Otherwise, you can look forward to a lengthy delay)
  • The Contractors Bond has to be signed by the Guy that is the Attorney In Fact for the Bond Company (Realistically, there isnít much that you have to worry about here. Every Legit Bond is going to be signed by this guy)
  • The Contractor bond has to be printed and signed on a universal bond form approved by the Attorney General. (Most Reputable Bond Companies will have the ability Electronically file the bond for you)
  • The Contractor bond has to be received by the California State Board within 3 months of the bonds effective date. (Again, This is normally taken care of electronically and shouldnít be stressed over.)

Then there is a Bond of a Qualifying individual. A Bond of a Qualifying Individual is for you fine folks that have your contracting business listed as a Corporation. Then if you become instead what they like to call a RME or a Responsible Managing Employee. The same Rules and guidelines listed above would apply for your companyís bond filing as well.

As Stated above, Most California Contractors Bonds are electronically filed with the CSLB which makes it especially easy for you, the contractor, since you wonít have to do anything with the bond after purchase. Once the Bond is received, It generally takes 7-10 business days for one for the state employees over at the CSLB to figure out that there is work to be done and processes it. Although, I have had a few cases were they have gotten in done quicker. I think itís a squeaky wheel gets the oil thing, but your mileage may vary.

One of the things that are ultimately important is staying on top of all of the changes in the state when it comes to insurance laws. California Changes Laws more frequently than most people change their underwear. For Example, as of last year any C-39 Roofing contractor now has to have not only a California contractors Bond, but Workers Compensation Insurance as well. Even if you do not have any employees! Chances are, that if you werenít aware of this in the last year of business, you may want to check the status of your , as it may be suspended.

For More information on how to get your California Contractors Bond or questions on the next steps for your company, please contact our commercial bond department at (530) 923-2930

ca contractor bond

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