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California Contractor Bond
In California, all contractors licensed by the Contractors State License Board (CSLB) are required to have a $25,000 contractor bond.
The contractor license bond Jet Insurance Company provides is the financial guarantee required to be a legitimate contractor. It also offers clients, vendors, and employees peace of mind that the contractor is in compliance with all state construction regulations and qualifications.
Whether you're seeking to obtain or renew a contractor license, our dedicated Jet team can assist you with no middlemen brokers to delay processing or adding unwanted fees to your bond cost.
Have a question about your bond needs? Call (916) 836-5330 to ask a contractor license bond expert.
How Much Does a Contractor Bond Cost in California?
The bond premium (price you pay) depends on several factors, but Jet’s rates start at $11 a month or $109 annually.
Unlike other state license bond requirements where gross receipts, contract amount, license type, or business type determines the bond limit, the contractor license bond (CLB) in California is the same limit for all contractors ($25,000), providing consistency for clients and making the total licensing process less confusing. Other factors that determine your surety bond cost include personal credit and years of licensed experience.
The chart below shows a few of the many pricing tiers Jet has to offer contractors. Being a direct provider allows Jet Insurance Company to provide upfront pricing and no delays due to agent commissions or inability to act on your behalf.
| Pricing Class | Monthly | Annual* |
|---|---|---|
| Elite | $11 | $109 |
| Preferred | $20 | $200 |
| Industry-Standard | $26 | $263 |
| Underwriting Review | $115 | $1150 |
| *Not all pricing tiers are shown. |
How Does Jet’s Contractor Bond Application Process Work?
When it’s time to purchase your contractor bond, use the button below to start Jet’s quick bond application. It takes only a minute to supply the required information and see your personalized price and term options.
Contractor license bonds are heavily credit-based, so be prepared to provide your social security number to complete the soft-credit review. Most bond applicants receive rates to purchase instantly, however, there are occasions when a manual review of your application may be required by one of our underwriters. Even then, the underwriting process time is short and your quote will be emailed to you with a link for direct online purchase.
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 will electronically file the bond to the Contractors State License Board automatically, whether you are a new contractor with an application fee number or an experienced contractor making the surety switch to Jet—just another way the Jet team makes the bonding process easy for contractors to get started on or back on the job.
For details on how to apply for a contractor license, check out “Apply for a License” on the CSLB’s website. You can find license renewal information and additional forms on the site as well. Licensing Fee 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
Payments for license fees are not accepted over the phone. Payments by mail should be made by check or money order only.
How Are Contractor Surety Bond Claims Handled?
Since your bond relationship is with a surety directly, Jet handles all facets of the bond life-cycle including the unfortunate circumstance of a bond claim. Our universal claims guide (linked below) delves into the general claims process for construction bond claims.
A perfect example of a common contractor bond claim would be in the case of Harry Homeowner and his room addition. Harry Homeowner works with Carl Contractor to put together a build estimate and Harry pays the required deposit. As Carl Contractor begins to work on the agreed-upon room addition, Mr. Homeowner experiences significant delays in progress, notices Carl’s shoddy workmanship, and has concerns about future construction defects. Despite multiple attempts to resolve the issues with the contractor, Harry Homeowner is unable to get Carl Contractor to fix the issues or even move forward with the project to eliminate further delays.
Harry Homeowner contacts the surety bond company listed on Carl Contractor’s license page for restitution. The surety company reviews the claim information and conducts an investigation. It is determined that Carl Contractor did indeed breach the contractual obligations and failed to deliver the promised quality of work within the agreed-upon timeframe. As a result, the surety company finds the claim to be valid. Payment is made to Mr. Homeowner for the financial loss he incurred due to the contractor's negligence and poor building skills.
California, as always, has state-specific claims requirements to be aware of. The California Business and Professions Code clearly states what the bond is intended to cover as well as exactly how much the bond will offer in recompense.
Just because the bond is $25,000 doesn’t mean the bond will payout that amount for a valid claim. California stipulates that only a homeowner hiring a contractor to perform home improvement or new build work will be offered the full bond limit, should the surety company find that the contractor was negligent or willfully committed fraud. The vendors, subcontractors, and employees who are not paid for services rendered are limited to a different, much smaller bond limit which is offered on a first come first serve basis.
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.
What Other Contractor Bonds Are Required in California?
As stated above, all licensed contractors in California must have and maintain a $25,000 contractor bond. There are certain contractor business entities that have additional bond requirements:
$100,000 LLC Employee/Worker Bond: Limited Liability Companies (LLCs) must file a $100,000 surety bond to guarantee payment of wages and/or fringe benefits.
Bond of Qualifying Individual (BQI): licensed businesses qualified by a Responsible Managing Officer (RMO) are required to hold a $25,000 BQI when the RMO owns less than 10% of the corporation’s voting stock.
Additional bond requirement information can be found on the CSLB Bond Requirements page.
There disciplinary actions handed down by the California Contractors State License Board requiring specific disciplinary bonds to be filed. Jet offers the necessary surety lines to comply with these additional license specifications. Call (916) 836-5330 or email [email protected] with any questions and we will happily assist.
