Short answer: every active California contractor license needs a $25,000 contractor bond on file with CSLB. Some licenses also need a $25,000 bond of qualifying individual, and LLC licenses need a $100,000 employee/worker bond. You pay a yearly premium that’s a fraction of the bond amount, based mostly on your personal credit.
Get a bond quote or call 888-391-5981.
Which bonds you need
| Bond | Amount | Who needs it |
|---|---|---|
| Contractor bond | $25,000 | Every active CSLB license |
| Bond of qualifying individual | $25,000 | Licenses qualified by a responsible managing employee (RME), some responsible managing officers, and LLCs |
| LLC employee/worker bond | $100,000 | Every LLC license |
What a contractor bond does
The bond protects your customers and workers, not you. If a court or CSLB finds you owe a customer or an employee money, the bond company can pay and then collect from you. It isn’t insurance for your business; you still need general liability.
What affects the price
- Personal credit of the owner or qualifier (the biggest factor)
- Years in business and license history
- Past bond claims or complaints
We compare more than one surety company to find you a better rate.
LLC licenses also need liability insurance
LLC contractors must carry at least $1 million in liability insurance if they have five or fewer people of record, with more required as that number grows. See our contractor insurance page.
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Frequently asked questions
How much is a $25,000 contractor bond?
You pay a yearly premium that’s a small percentage of the bond amount. The rate depends mostly on personal credit. We’ll quote it at no cost.
Can I get bonded with bad credit?
Usually yes, at a higher rate. Several sureties write contractors with credit challenges.
Does the bond replace liability insurance?
No. The bond protects customers and workers. General liability protects your business from injury and property damage claims.