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All about California Contractors Bond

All about California Contractors Bond

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: