California Contractors License Bond

A California contractor license bond is a $25,000 surety bond that every contractor licensed by the Contractors State License Board (CSLB) must keep on file. Required under Business and Professions Code §7071.6, it protects consumers and workers harmed when a contractor violates California's license law. It is not insurance for the contractor: if the surety pays a valid claim, the contractor must repay it.

Key Takeaways

• Bond amount: $25,000 for every license, in all classifications.
• Cost: contractors with a credit score of 700 or higher typically pay $250 to $750 a year.
• Additional bonds: LLCs also need a $100,000 LLC Employee/Worker Bond. Licenses qualified by an RME, or by an RMO who owns less than 10% of the voting stock, need a $25,000 Bond of Qualifying Individual.
• Continuous coverage: the bond stays in force through every license renewal. If it's canceled and no replacement is on file, CSLB suspends the license.

For a deeper look at what drives premiums, see our surety bond cost guide or estimate your premium with the surety bond cost calculator. For practical ways to bring your rate down, read how to lower your surety bond rate.

1. Confirm Which Bonds Your License Needs

Every license needs the $25,000 contractor's bond. Depending on how your license is qualified and structured, you may also need:

• a Bond of Qualifying Individual,
• an LLC Employee/Worker Bond, or
• a disciplinary bond.

2. Apply Online

Our online application takes about five minutes. Have these details ready:

• your exact business name as it appears, or will appear, on your CSLB record,
• your license number, if you already have one, and
• the license classification(s) you hold.

3. Receive Your Quote

Most applicants get a quote within minutes. Files that need extra underwriting, such as challenged credit or a prior claim, can take 24 to 48 hours. We guarantee that you’re always getting the best quote possible.

4. Pay the Premium and File the Bond With CSLB

Once you pay, the bond is issued and filed with CSLB. The business name and license number on the bond must match CSLB's records exactly, or the filing will be rejected. CSLB must receive the bond within 90 days of its effective date. You can find the full filing rules on CSLB's bond requirements page.

New to bonding? Our guide on how to get bonded walks through the process in more detail. Have questions along the way? Contact us or call (877) 514-5146.

Bond of Qualifying Individual

If your license is qualified by an RME, you need a $25,000 BQI. You also need one if your license is qualified by an RMO who owns less than 10% of the corporation's voting stock.

An RMO who owns 10% or more files a Bond of Qualifying Individual Exemption Certification instead. The BQI is filed in addition to the contractor's bond. The qualifier's name, the business name and the license number on the BQI must match CSLB's records exactly.

LLC Contractors

LLCs carry the heaviest bonding requirements in California. In addition to the $25,000 contractor's bond, an LLC needs a $100,000 LLC Employee/Worker Bond. This bond protects workers if the LLC fails to pay wages, interest on wages, fringe benefits or related contributions.

LLCs must also carry general liability insurance under B&P §7071.19:

• at least $1 million for LLCs with five or fewer people on the personnel of record, plus
• $100,000 for each additional person, up to a $5 million maximum.

See CSLB's LLC license requirements for details.

Disciplinary Bond

If CSLB revokes a license for a violation of the Contractors' License Law, the contractor must file a disciplinary bond to reinstate or reissue it. The Registrar sets the amount based on the seriousness of the violation. It can't be less than $25,000 or more than ten times the contractor's bond.

The disciplinary bond is filed on top of all other required bonds. It can't replace or be combined with them.

Other Bonds California Contractors May Need

The license bond only satisfies CSLB. Public and many private projects require separate contract bonds, such as bid bonds, performance bonds and payment bonds. These guarantee a specific project rather than your license. For other bonds required in the state, see our California surety bonds page.

Anyone performing construction work in California needs a CSLB license, and therefore a bond, unless the job qualifies for the minor work exemption.

Since January 1, 2025, that exemption covers jobs under $1,000 in total labor, materials and all other costs, raised from $500 by Assembly Bill 2622. The exemption only applies if both of these are true:

• the work doesn't require a building permit of any kind, and
• the unlicensed person doesn't hire any workers to help.

If either condition isn't met, a license is required even for a job under $1,000. See CSLB's AB 2622 industry bulletin for details.

Splitting a larger project into smaller contracts to stay under the threshold is illegal. Unlicensed contracting can bring administrative fines of up to $15,000, criminal fines and jail time.

California contractor bonds are continuous. They run alongside your license and every renewal period until they're canceled, so you don't buy a new bond each time your license renews. You do pay the premium every year, or every term if you prepay a multi-year bond.

If your surety cancels the bond and no replacement is on file by the cancellation date, CSLB suspends your license. Working, bidding or advertising while suspended is unlicensed contracting. When you switch bond providers, make sure the new bond's effective date matches the old bond's cancellation date so there's no gap.

You can confirm your bond status at any time with CSLB's license check.

How much is a California contractor license bond?

The bond amount is $25,000, required by CSLB under Business and Professions Code §7071.6 since January 1, 2023. You pay an annual premium, a percentage of that amount based mainly on your credit. Contractors with a credit score of 700 or higher typically pay $250 to $750 a year.

Are contractors required to be bonded in California?

Yes. Every CSLB-licensed contractor must keep a $25,000 contractor's bond on file to get, reactivate or renew a license. Some contractors need more: licenses qualified by an RME, or by an RMO owning less than 10% of the voting stock, need a $25,000 Bond of Qualifying Individual. LLCs need an additional $100,000 LLC Employee/Worker Bond.

How long does a contractor's bond last in California?

California contractor bonds are continuous. They stay in force through each license renewal until the surety or the contractor cancels them. You pay the premium each year or bond term to keep the bond active. If the bond is canceled and no replacement is filed by the cancellation date, CSLB suspends the license.

How do I file a claim against a contractor's bond in California?

Homeowners, employees owed wages and others damaged by a contractor's license-law violations can claim against the bond under B&P §7071.5. Start by looking up the contractor's license on the CSLB website to find the surety company and bond number. Then file the claim with that surety or bring an action in court.

Most claims must be brought within two years after the end of the license period in which the problem occurred, or within two years after the license was inactivated, canceled or revoked, whichever comes first.

Do I need a contractor's license for small jobs in California?

Not always. Since January 1, 2025, jobs under $1,000 in total labor and materials are exempt, but only if the work needs no building permit and the unlicensed person hires no workers. Any job that needs a permit or workers requires a license, even if it's under $1,000.

Do subcontractors need a contractor license bond in California?

Yes. Every licensed subcontractor needs its own $25,000 contractor's bond, the same amount general contractors file. Subcontractors can't work under the general contractor's license or bond. On public works, a prime contractor can also require a sub to furnish a performance and payment bond, but only if the requirement was stated in the request for subbids.

Can I get a California contractor bond with bad credit?

Yes. Applicants with low credit scores pay higher premiums, but in our bad credit program they rarely pay more than 10% of the bond amount, or about $2,500 a year on a $25,000 bond.

More questions? Visit our surety bond FAQ or contact our team.