Do I need a bond?
California contractors are legally required to maintain a form of security deposit as a guarantee that they will perform in a good and workmanlike manner. Surety bonds are commonly used for this purpose.
What amount must the bond be?
As of January 1, 2016, the required amount of a contractor’s bond is $15,000.
When do I need to get a bond?
Before an active contractor’s license can be issued or renewed, or an inactive license made active, the licensee must have a current Contractor’s Bond, or an approved alternative to the bond, on file with the CSLB. The Contractor’s Bond is in the amount of $12,500.
What if I am a “Qualifying Individual”?
In addition to a $15,000 Contractor’s Bond, you must have a $12,500 Bond of Qualifying Individual, or an approved alternative to the bond, on file for each responsible managing employee (RME). You must also have a $12,500 Bond of Qualifying Individual on file for each responsible managing officer (RMO) unless the RMO owns 10 percent or more of the voting stock of the corporation.
What if my license is inactive?
If the license is inactive, neither the Contractor’s Bond nor the Bond of Qualifying Individual is needed.
Can I transfer an existing bond from another license?
No, bonds are not transferable–do not attempt to transfer a bond from one license to another or from one qualifying individual to another.
What if my business name has changed?
The business name and the license number on the bond must correspond exactly to the information in the records of the CSLB. The license number on the bond of a qualifying individual must match that of the firm for whom the individual is to serve as the qualifying individual.
Why should I choose a bond from Economy Bonds?
Value and reliability. Economy Bonds are written with American Contractors Indemnity Company, California’s leading and most experienced contractor’s license bond carrier. Economy Bonds offers the most competitive prices in the state. Economy Bonds can offer bonds from California’s most experienced surety company at nearly one third off their regular premium.
Why is American Contractors Indemnity Company California’s leading contractor’s license bond carrier?
They write more license bonds than the next five companies combined. Their #1 position is by virtue of unmatched claims handling expertise in the contractor’s license bond business, which no other company can approach. American Contractors Indemnity Company has been California’s largest writer of contractor’s license bonds for more than 20 years. They bond more California contractors than the next 5 competitors combined.
How do I apply for a bond from Economy Bonds?
Apply online or download forms at our Contractor’s License Bond page.