California Bond of Qualifying Individual

California Bond of Qualifying Individual

Construction companies in California that are licensed through the Contractors State License Board (CSLB) and have qualifying individuals owning 10% or less of the voting stock will be required to file a Bond of Qualifying Individual (BQI) in the amount of $25,000. This bond is required in addition to the $25,000 California Contractor License Bond. 



Unsure if your company needs a BQI Bond? Call (916) 836-5330 to talk with a contractor license bond expert.
Or review the corporate structure chart below.

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How Do I Know if I Need a Bond of Qualifying Individual?

In short, a BQI is required if the qualifier is a Responsible Managing Officer (RMO), Responsible Managing Employee (RME), or Responsible Managing Manager (RMM) with less than 10% ownership of the corporation’s equity or voting stock.

A license qualifier is different than a qualifying individual. The California License Board labels a qualifier as, “...the person listed in CSLB's personnel of record has demonstrated his or her knowledge and experience through the application process, and holds one or more license classifications.” This means that anybody licensed as a contractor in the state of California is a license qualifier. Alternatively, only certain individuals are qualifiers of companies. See the table below to identify the different types of qualifiers a license may have.

Qualifier TypeQualifier Criteria
RMOAn RMO is defined as a corporate officer that owns less than 10% voting stock in the corporation or LLC with direct supervision and control of the company’s construction. An RMO can be a qualifier on up to 3 different licenses at a time.*
RMEAn RME is a permanent employee of the qualifying company, working a minimum of 32 hrs per week or 80% of the week at the qualifying company’s business. An RME can only be a qualifier on 1 license at a time. RMEs must always hold a Bond of Qualifying Individual.
RMMBusinesses filed as LLCs must list all members and managers. RMMs are a member or a manager listed as LLC personnel and owning less than 10% voting stock.
Qualifier due to DeathUpon the death of an actively licensed contractor, an immediate family member or filed personnel member of the licensee can file for a continuation, based on posted criteria.
 *If the RMO has less than 20% ownership, the RMO is restricted to being the RMO of only one corporation.
Types of Qualifying Individuals

How Much Does a Bond of Qualifying Individual Cost in California?

For as low as $14 a month or an annual cost of $141, depending on underwriting, Jet can provide the bond for each required qualifier.

If the license has more than one RME or RMO qualifying the license, each qualifier must meet the qualifier bonding requirements with a $25,000 BQI. With Jet’s low-cost bonds and monthly payment options, ensuring all your qualifiers are bonded has never been easier.

Jet’s pricing chart below showcases just a few of the many pricing tiers offered for qualifying contractors.

Pricing ClassMonthlyAnnual*
Elite $14$141
Preferred$20$200
Industry-Standard$31$313
Underwriting Review$163$1625
*Not all pricing tiers are shown.
$25,000 Qualifier Bond Pricing

Jet is a direct surety company with years of experience in California construction bonds. There is no third-party middleman in the way to add pesky commissions to your bond price all while not understanding the BQI bond requirements needed for your construction business.

How Does Jet’s Bond Application Process Work?

Unlike the Contractor License Bond application, which allows any listed personnel to apply and obtain the bond, the $25,000 Qualifier Bond is specifically for the qualifier, so the individual must adhere to the underwriting review, including the soft credit check.

When it’s time to purchase your surety bond, click on the button below to complete Jet’s simple bond application. It only takes a few minutes to provide the required information and see your custom price and term options. Nearly all bond applicants receive rates to purchase instantly, however, there are occasions when a manual review may be required. If a review is required, our underwriting team will send you approved rates via email shortly after and you will be able to purchase the bond immediately online.

START BOND APPLICATION

You will receive a digital copy of your bond and a receipt for your business records once payment is complete.

Who Files the Bond With the CSLB Once It Is Purchased?

Jet has electronic filing capabilities with the Contractors State License Board, so we will take care of it for you, whether you have a new application fee number or are making the surety switch on an existing license—yet another way Jet Surety makes the bonding process a breeze for contractors. 

Additional California Contractor Bond Information

How to Renew My Bond

Ready to renew your annual bond? Check out Jet’s simple process.

How to Cancel My Bond

Here are the general guidelines for canceling a contractor bond with Jet.

Bond Claim Process

License qualifiers should understand claim causes and the process.

What Other Contractor Bonds Do I Need?

While a Bond of Qualifying Individual is specific to the business structure of the company, every contractor licensed in California must have and maintain a $25,000 Contractor Bond. Let Jet help keep all your surety bonds in one place, whether it is the $100,000 LLC Employee/Worker Bond, a county- or city-specific permit bond, or the Contractor License Bond. Jet offers all the surety lines your company needs to stay legitimate and profitable. Call (916) 836-5330  or email [email protected] with any questions and we will happily assist.

California Bond of Qualifying Individual 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: