In California, all licensed contractors are required to post a surety bond or cashier's check with the Contractors State License Board (CSLB). The purpose of the bond is to protect consumers and employees from financial losses if a contractor fails to complete a project or fails to pay its workers.
The amount of the bond is currently $25,000. However, some contractors may be required to post a higher bond amount, such as if they have been disciplined by the CSLB in the past.
The bond must be written by a surety company that is licensed by the California Department of Insurance. The bond must be in the name of the contractor and must be filed with the CSLB.
If a contractor fails to complete a project or fails to pay its workers, the person who hired the contractor can file a claim against the bond. The surety company will then be responsible for paying the claim, up to the amount of the bond.
There are a few exceptions to the contractor bonding requirement. For example, contractors who only perform work that is exempt from licensing do not need to post a bond.
The contractor bonding requirement is an important consumer protection measure. It helps to ensure that consumers and employees will be compensated if a contractor fails to fulfill its obligations.
Here are some additional things to know about California contractor bonds:
- The bond must be renewed every two years.
- The bond can be canceled if the contractor is disciplined by the CSLB.
- The surety company may require the contractor to provide financial information before issuing the bond.
Here are some resources where you can learn more about California contractor bonds:
- California Contractors State License Board: https://www.cslb.ca.gov/Contra...
- To purchase your California Contractors State License Board now: https://ampcinsurance.propeller.insure/axelerator-public/