California LLC Employee/Worker Bond

California LLC Employee Worker Bond

In California, a contractor organized as a Limited Liability Company (LLC) is required to file a $100,000 LLC Employee/Worker Bond with the Contractors State License Board (CSLB). This is an additional requirement to the $25,000 Contractor License Bond. The LLC Bond ensures the employees of the company will receive compensation in the event the LLC fails to pay them for their performed work, including any wages, fringe benefits, welfare contributions, and apprenticeship costs.

Jet Insurance Company issues LLC and license bonds to contractors and instantly files the bonds with the CSLB, ensuring compliance with state regulations and qualifications.



Jet provides affordable monthly rates for all state-required bonds directly to the contractor. Our team of underwriters are here to assist you with any bonding questions and needs. We cut out the middleman, saving you time and money.

How Much Does the LLC Employee/Worker Bond Cost?

Jet’s $100,000 LLC Worker bond rates start at $100 per month or $1,000 for one year term.

The price Jet offers depends on several underwriting factors, such as personal credit of all owners and total years of licensed experience. In addition, our underwriting team will need to review monthly payroll amounts and current cash-on-hand totals. See the chart below for an example of how standard underwriting practices affect your bond price:

Underwriting CriteriaMonthlyAnnual*
No Employee Payroll$100$1,000
Payroll up to $30,000/month$120$1,200
*Not all available pricing tiers are listed.
$100,000 LLC Employee/Worker Bond Price

As a direct-to-contractor surety company, Jet is able to supply monthly payment options and no hidden fees. Since we cut out the middlemen agents and brokers, we can get these bonds issued and filed the same day.

How Do I Start My Application?

When it’s time to purchase your $100,000 LLC bond, simply click the “Quote” button to start Jet’s quick, comprehensive bond application. It only takes a few minutes to apply and provide the required information to see your personalized price options.

The underwriting of LLC Employee/Worker Bonds is heavily credit-based, so be prepared to provide your social security number to complete the soft-credit review—this will not impact your credit score.

Limited Liability Companies with little to no payroll will get instant pricing! There are occasions when a manual review of your application may be required by one of our underwriters. Even then, the review process is short and your quote will be emailed to you with a link for direct online purchase.

START BOND APPLICATION

How Does My Bond Get Filed With the CSLB?

Jet Surety electronically files the bond directly to the Contractors State License Board, saving you time and headaches. Our dedicated team of surety specialists will handle all of your bonding needs whether you are a new contractor or a seasoned veteran in the industry. 

For additional details and a complete list of requirements on how to apply for an LLC license, check out the “Licenses for Limited Liability Companies (LLC)” page on the CSLB’s website. You can find other license renewal information and additional forms on the site as well. License renewal payments are accepted only by mail, at CSLB's Sacramento Headquarters located at the following address:

Contractors State License Board
9821 Business Park Drive
Sacramento, CA 95827

How Are Bond Claims Handled?

Here at Jet, we handle all aspects of your bond—from the initial application to the surety bond filing; even in the event of an unforeseen bond claim, our team works with you to handle it smoothly and efficiently so you can get back to business.

California LLC Employee/Worker Bonds operate differently than your traditional license bond when it comes to claims. California states the only individuals eligible to make a claim against this bond are workers employed by or contracted to work for the LLC. The types of claims that are valid under this bond include those for unpaid wages, interest on wages, and even fringe benefits. The bond is intended to act as an additional safeguard for employees of the LLC to ensure they are paid by the contractor. All claims must be filed within six months of the date the wage negligence occurred. Additional information regarding claims can be found within the California Business and Professions Code § 7071.4.

Example Bond Claim Scenario

Contractor Michael starts his own LLC and employs two people to work alongside him. He informs both employees when hired what their pay will be. His two employees, Scottie and Dennis, accompany Michael to each job site and help to complete the project. When the project is finished, Michael finalizes the transaction with the client, and the LLC receives the final payment for the project. Throughout the duration of the project, Michael has only been paying Scottie and Dennis a portion of their weekly pay, stating they will receive a larger lump sum at the end of the job. When it comes time to pay, Michael gives money to both Scottie and Dennis, but it's only 80% of what they were owed.

Both Scottie and Dennis talk to Michael about this error, but Michael informs them that he is dissolving the LLC and would not be paying anything else to them. Scottie and Dennis decide to contact the surety company that wrote Michael’s bond and report the situation. Upon reviewing all of the information submitted by the claimants and the contractor and investigating the validity of the claim, the surety found that Michael dissolved the LLC to avoid paying his employees. As a result, the surety validated the claim and made payment to both Scottie and Dennis to make them whole on their missing wages and seeks reimbursement from Michael.

Additional California Contractor Bond Information

How to Renew My Bond

For annually-purchased bonds, see Jet’s simple renewal process.

How to Cancel My Bond

Here are the general guidelines for canceling a contractor bond.

Bond Claim Process

Contractors need to know what causes a claim and the claim process.

Am I Required to Have Other Bonds in California?

All licensed contractors must file a $25,000 Contractor License Bond with the Contractors State License Board to maintain a license to conduct construction work in the state of California.

Additionally, licensed businesses that are qualified through a Responsible Managing Officer (RMO) are required to carry a $25,000 Bond of Qualifying Individual (BQI) when the RMO owns less than 10% of the common stock of the corporation.

Call (916) 836-5330 or email [email protected] with any questions and we will happily assist.

California LLC Employee Worker Bond Form

Notary Bond Application:

X

Business Information:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Employee Dishonesty Bond Application:

Business Information:

Business Description:

Coverage Requirements:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Contract Bond Application:

X

Business Information:

Owner Information:

Job Details:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Worker's Compensation Application:

X

Business Information:

Business Description:

Coverage Requirements

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information: