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The experts at ContractorBonds.org are brokers that collaborate with a variety of surety underwriting markets, we shop your insurance to find the lowest available rates including, Swimming Pool Contractor Bonds, 灯蓝免费安卓 and Roofing Contractor Bonds.

" We operate a small construction business in Northern California. I don't remember how we heard about ContractorBond.org, but I am very happy that we did. They are perhaps the most responsive business I have ever dealt with. Even though I have never meet them in person, I feel we can always count on them to be there for us. You will not be disappointed working with them!"

Ross O.

"We saved $300 on our California contractor bond renewal, so I gave them a shot at my upcoming general liability renewal as well. Glad I did, They were able to save me another $750. Over a $1,000 Savings total!"

Janet A.

My credit took a major hit when the economy crashed and I could no longer afford my renewal due to bad credit. Mike found me a provider at a fraction of the cost and a low down payment."

Juan P.

Who does a Contractor Bond Protect?

A Surety bond is a formal agreement between the State of California and a surety company that a contractor will uphold license law. (B&P Code Section 7000)

Contractors are to abide by the rules and regulations set forth by the CSLB to avoid disciplinary action against their license. In the event a contractor does not comply with state law, a claim may be filed with the surety company by a customer, supplier or employee.

For Example, If a contractor were to take a deposit from a homeowner and does not finish the job as specified in their contract, the homeowner may then file a claim.

What Parties are Involved in a Surety Agreement?

There are three parties involved:

1. The principle who is the contractor who purchased the California contractor license bond to meet their CSLB requirement

2. The Obligee who is the government or state agency who sets the requirement for the license to be issued.

3. The Surety Company who provides the financial promise to ensure the contractor will abide by the laws set in place by the State.

What Bond Amount is Required in California?

Effective January 1st, 2016, the California Contractors State License Board (CSLB) increased the required surety amount from $12,500 to $15,000.

This amount is not per project but is the total amount of all jobs the contractor takes on during the time the bond remains effective. Contractors who have violated California Law may also be subject to a separate disciplinary bond. The amount and time of an additional disciplinary requirement is unique to each contractor's situation.

Always abide by the law to avoid the high costs associated with penalties and subjecting your license to suspension.

How is a Bond different than Insurance

Many contractors confuse a surety bond with California contractor insurance, but there is a distinct difference between the two.

One of the primary reasons bond pricing is based heavily upon your individual credit history is because a contractor is liable for their actions and will have to repay the surety company in the event a claim is paid out.

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Click here for more information on CSLB License Requirements.

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