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Changes to Bond Requirements Effective January 1, 2023. Attention licensed contractors: On January 1, 2023, the contractor license bond, bond of qualifying individual, and disciplinary bond, increased to $25,000 as a result of Senate Bill 607. See more about SB 607 in these Industry Bulletins from October 2022 and December 2021.
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Key Bond Requirements. The contractor license bond must meet the following requirements: The bond must be written by a surety company licensed through the California Department of Insurance. The bond amount is $25,000 as of January 1, 2023. The business name and license number on the bond must exactly match the CSLB’s records.
This section provides information on bond requirements, including Contractor's Bonds, Bonds of Qualifying Individuals, and Disciplinary Bonds.
How Much Does the California Contractor License Bond Cost? The $25,000 California Contractor License surety bond costs between $141 to $1,625 per year or $15 to $163 per month. Insurance companies determine the rate based on a number of factors including your customer’s credit score and experience.
General Bond Information. This section provides general information on bonds. It also provides helpful tips for maintaining your bond in order to avoid having your license suspended. If a license is actively renewed, you must comply with the bond requirements.
Contractors commonly use a surety bond (referred to as a “contractor license bond”) where a surety company promises the State of California that it will pay damages if the contractor violates contractors’ state license law.
