The Contractors State License Board requires all licensed California contractors to obtain a $15,000 license bond, (or bond equivalent) as a condition for being licensed. The California contractors license bond benefits employees or customers if they are financially harmed as a result of a contractor's actions.
A Bid Bond is typically required when the owner of a construction project wants some type of assurance from a contractor that if awarded a job, the contractor will enter contract with the owner under the terms negotiated in the bidding process. The bond typically precedes a Performance Bond requirement.
A Performance Bond guarantees that a contractor will complete an awarded job according to the terms of the contract negotiated with the owner. The bond becomes payable if an unfortunate event, such as the contractor becoming insolvent, prevents the completion of a job according to the agreed upon terms.
A $100,000 LLC Bond (or bond equivalent) is required for all contractors in California with a business entity registered as an LLC (Limited Liability Company). The bond benefits a contractor’s employees or workers should the contractor fail to pay wages or benefits owed.
Welcome to Surety First Insurance Services, Inc., a family-owned agency. We specialize in working with California contractors to find competitive solutions for all their bonding and insurance needs. Based locally here in Northern California just a short drive from the CSLB, we’ve partnered with many of the state’s top insurers to help contractors obtain quality, affordable solutions. Learn more about our California contractors bond services today!
A surety bond is an agreement between three parties; the principal, the obligee, and the surety company. The principal is the contractor who purchased a bond, the obligee is the CSLB who required said bond, and the surety financially promises the obligee that the principal will abide by the terms of that bond.
Yes, operating without a license or contractors bond can result in fines or imprisonment. The CSLB has a team specifically trained to investigate these occurrences to ensure that citations and charges are filed accordingly. In addition, consumers can check for a license prior to signing on to a contract.
The price of a California contractors bond can vary and it depends on a few factors however the applicant’s credit score plays a large role. For well-qualified applicants, average annualized rates can start at under $100. With just a few key pieces of information, you can get a free personalized quote in minutes. Get bonded today!
We guarantee our bonds will be accepted by the obligee or we’ll refund your money. See details.
Many bonds can be printed online directly after purchase and expedited shipping is available for others.
Since starting in 2006, we’ve bonded thousands of successful small businesses just like yours.