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California Contractor License Bonds

California’s Contractors State License Board requires an active contractor license bond and may require separate bonds for a qualifying individual or an LLC’s employee and worker obligations. Contractors should verify the business and license names, qualifier ownership status and any additional bond before applying, reactivating or renewing. 1,5

What Is Surety Bonds?

A surety bond guarantees that your business meets a specific obligation to a customer, contracting party or government agency. If a contract, license or permit requires one, get its exact form and amount; a bond is not insurance for your own losses. Read the national Surety bonds guide.

California Requirements

RequirementDetails
Contractor’s license bondFor the contractor bond, BPC § 7071.6(a) requires $25,000 for issuance, reinstatement, reactivation, renewal or continued maintenance, but not while the license is officially recorded as inactive. Under § 7071.6(d), the Board may require an applicant to post twice that amount through renewal if the applicant was convicted of a § 7028 violation or was cited under § 7028.7 and the citation was reduced to a final order of the Registrar, and the § 7028 violation or citation basis constituted substantial injury to the public. 1,5
Qualifier bondBPC § 7071.9 requires a separate $25,000 Bond of Qualifying Individual when the qualifying individual is neither the proprietor, a general partner, nor a joint licensee; the bond is additional to the contractor bond. Subdivision (a) does not apply to a federally recognized tribe or a participating tribe. A corporate RMO is exempt only if it owns at least 10% of voting stock and certifies that on the prescribed form; an LLC qualifying individual is exempt only if it owns at least 10% membership interest and certifies that on the prescribed form. CSLB says RMEs cannot use the ownership exception except for Tribal Businesses, and each applicable qualifier must comply. 1,3
LLC employee/worker bondAn LLC contractor license requires a separate $100,000 surety bond for specified employee and worker wage and benefit obligations, except while the license is officially inactive. 7,6

What to Watch for in California

  • Make the bond match the licensed business record

    CSLB requires the contractor-bond business name and license number to match its records exactly and specifies an approved form, surety authorized through the California Department of Insurance and filing within 90 days after the bond’s effective date. A mismatch can hold up license issuance or maintenance. 1

  • Check each qualifier’s role and ownership

    Check each qualifying individual’s role and entity. Under § 7071.9, the $25,000 bond applies when the qualifying individual is neither the proprietor, a general partner, nor a joint licensee; it is separate from the contractor bond. A corporate RMO may use the exception only with at least 10% voting stock and prescribed certification. An LLC qualifying individual may use it only with at least 10% membership interest and prescribed certification. CSLB says RMEs cannot use the ownership exception except for Tribal Businesses; if multiple RME or RMO qualifiers serve a license, each must meet the applicable rule. The statute says subdivision (a) does not apply to a federally recognized tribe or a participating tribe; verify the entity’s status with CSLB rather than assuming other tribal status qualifies. 1,3

  • Budget for a separate LLC worker bond

    An LLC’s $100,000 employee/worker bond is separate from the $25,000 contractor bond and protects specified wage and fringe-benefit claimants. The statute says this added bond is not applicable while the license is officially inactive; check CSLB’s recorded status before budgeting or arranging reinstatement. 7,6,1

  • A disciplinary bond is additive

    BPC § 7071.8 applies to the listed applications and license actions involving specified people or firms tied to disciplinary suspension or revocation. In those covered cases, the Board shall require a disciplinary bond as a condition precedent. The Registrar sets the amount based on seriousness: at least $25,000 and no more than 10 times the § 7071.6 contractor-bond amount. It is additional to, cannot be combined with, and does not replace other chapter bonds. It stays on file at least two years, or longer if the Registrar requires; that period runs only while the license is current, active, and in good standing and is extended until it has remained so for the required period. 1,4

Who Regulates Insurance in California

California Department of Insurance

The California Department of Insurance regulates insurers and insurance producers, provides company and license-status searches, and accepts complaints through its Consumer Complaint Center. Its commercial-insurance guidance explains the Department’s limited jurisdiction over surplus-line insurers. 10,11,12,13,23

Surplus-lines tax and stamping office

Reported tax rate: 3% of taxable premium when California is the insured's home state When California is your home state, the surplus-line broker tax is generally 3% of gross premiums less returned premiums. Ask the broker to show the home-state determination, taxable premium and any applicable exception; ordinary multistate reporting does not itself reduce the tax base. A broker generally must search the admitted market unless a California exemption or the qualified federal commercial-purchaser exception applies. CIGA does not protect claims under a surplus-line policy. 14,16,21,13,15,17,18,19,22

Surplus Line Association of California

  • California usually requires an admitted-market search: Before most nonadmitted placements, a broker must search among admitted insurers. After a public hearing and the required statutory findings, California’s Commissioner may exempt qualifying coverage or risks through an Export List order. The confidential written report remains required under §1763.1. Separately, §1763(h) waives the search for a commercial insured meeting California’s §1760.1(b) definition: the broker must first give written disclosure about possible admitted-market availability and its potential greater protection and oversight, then receive the insured’s written request for nonadmitted placement. The broker must ensure eligibility, with a safe harbor for reasonable reliance on information supplied in good faith. The federal exempt-commercial-purchaser route under §8205 has its own §8206 definition and requires disclosure about possible admitted-market availability and its potential greater protection and oversight, followed by the purchaser’s written request. Ask which route and eligibility criteria the broker relies on. 15,18,19,8,9,24
  • Separate tax calculation from allocation reporting: Section 1775.5 generally counts the entire premium for nonadmitted insurance placed in one transaction with one underwriter or group for a California-home-state insured. It has a separate interstate-motor-transit formula and exclusions for premiums on insurance placed by or through a special-lines surplus line broker under §1760.5 and the defined risk-financing portion of specified Superfund remediation products. CDI’s calendar-year 2025 instructions include policy-related fees in gross premium, say it does not collect the tax on risks outside the United States, and treat multistate allocation percentages as informational. Have the broker explain how those rules apply to your placement. 16,20,21

Providers With Documented State Licenses

These providers publish a national listing for Surety bonds; the state records document licenses for the entities and roles shown below. Some records rely on company-reported information rather than independent regulator verification. A national listing does not confirm the product is available in California. Check the regulator’s license lookup and confirm state availability for your business when requesting a quote.

  • GallagherArthur J. Gallagher Risk Management Services, LLCInsurance producer · checked 2026-09-28Gallagher Small Business’s legal-information page gives the producer identification associated with the disclosed California license. The provider record treats this identifier as company-reported and not independently verified; no other state is recorded. 28
  • TechInsuranceSpecialty Program Group LLCInsurance producer · checked 2026-09-28TechInsurance’s current licensing page names Specialty Program Group LLC / SPG Insurance Solutions and lists state license numbers, but labels Rhode Island “Individual licenses” rather than identifying a license for the named agency. RI is omitted because this disclosure does not establish agency authority there; this is a search limitation, not an assertion that the company is unlicensed. The remaining state entries are company-reported and are not an insurance product availability map. 32
  • TravelersThe Travelers Indemnity CompanyInsurer · checked 2026-09-28California DOI’s current company profile identifies The Travelers Indemnity Company (NAIC 25658) as UNLIMITED-NORMAL for property and casualty, authorized since 17 June 2002. The source covers this insurer in California and does not map every Travelers product to this issuing company; no expiry/renewal date is shown. 34

Questions to Ask Before You Buy in California

  1. Does the licensed principal’s exact legal business name and license number appear on every bond form?
  2. For each qualifying individual, which entity/role rules apply, and does any 10% ownership exception have the required prescribed certification (or does the exact statutory tribe exception apply)?
  3. Is the license an LLC that needs the additional employee/worker bond, or has CSLB required a disciplinary bond?
  4. What indemnity agreement, personal guarantees or collateral does the surety require from the contractor and owners?

Surety Bonds in California: FAQ

Does California’s $25,000 contractor bond insure the contractor against defective work? 5,1

No. The contractor is the principal, and the bond is filed for the benefit of specified claimants under contractor-license law. It is not a substitute for the contractor’s liability or property insurance and does not automatically guarantee completion of a customer’s project. 5,1

Can a California contractor use cash security instead of a surety bond? 2

CSLB says a cashier’s check or bank-certified check in the required amount can replace a required license bond. The agency’s current guidance states that certificates of deposit and similar instruments are no longer accepted, so confirm the current alternative and release timing directly with CSLB. 2

Who is the principal and who benefits from California’s contractor license bond? 1,5

The licensed contractor is the principal. CSLB describes the bond as filed for the benefit of consumers and employees damaged by license-law violations; the surety’s liability depends on the bond amount and statutory beneficiary rules. It is not the customer’s contract-completion bond. 1,5

Surety Bonds in Other States

Other Coverage in California

Sources

  1. Contractor Bond Requirements. California Contractors State License Board; Contractor’s Bond, Bond of Qualifying Individual and Disciplinary Bond sections; B&P Code §§ 7071.6, .8, .9. Accessed 2026-09-28.
  2. Bond Alternatives. California Contractors State License Board; Cashier’s Check or Bank-Certified Check: accepted alternatives and required amount; IMPORTANT: release timing and complaint holds; Requirements for a Cashier’s Check or Bank-Certified Check: instruments no longer accepted. Accessed 2026-09-28.
  3. California Business and Professions Code § 7071.9, Qualifying Individual Bond. California Legislative Information; Current section, subdivisions (a)(1)–(2), (c)–(d): qualifying-individual predicate and $25,000 bond; federally recognized/participating tribe text; corporate RMO voting-stock exception and LLC qualifying-individual membership-interest exception, each with prescribed certification; amendment effective January 1, 2025. Accessed 2026-09-28.
  4. California Business and Professions Code § 7071.8, Disciplinary Bond. California Legislative Information; Current section, subdivisions (a)–(d): covered persons/firms and applications/license actions; mandatory bond and $25,000 minimum/10-times-§ 7071.6 maximum; additive rule and two-year period that runs only while license is current, active, and in good standing; operative January 1, 2023. Accessed 2026-09-28.
  5. California Business and Professions Code § 7071.6, Bond as Condition Precedent to License. California Legislative Information; Current section; subdivision (a) requires a $25,000 contractor bond for issuance, reinstatement, reactivation, renewal or continued maintenance; subdivision (c) exempts a license officially recorded as inactive during the inactive period; subdivision (e) operative January 1, 2023. Accessed 2026-09-28.
  6. Licenses for Limited Liability Companies. California Contractors State License Board; LLC Employee/Worker Bond section; B&P Code § 7071.6.5. Accessed 2026-09-28.
  7. California Business and Professions Code § 7071.6.5. California Legislative Information; Current section, subdivisions (a)–(e): $100,000 LLC employee/worker bond; exception while license is officially inactive. Accessed 2026-09-28.
  8. California Insurance Code §1763. California Legislature; §1763(a): diligent search; (h)(1): defined commercial-insured written disclosure and subsequent request; (h)(2): broker eligibility responsibility and reasonable good-faith reliance. Accessed 2026-09-28.
  9. California Insurance Code §1760.1. California Legislature; §1760.1(b): commercial-insured definition at placement, risk manager, prior premiums and size criteria with periodic monetary adjustments; (o): qualified risk manager. Accessed 2026-09-28.
  10. California Department of Insurance. California Department of Insurance; Official agency homepage. Accessed 2026-09-28.
  11. Company and Agent/Broker Information. California Department of Insurance; State page linking license-status checks, company information, and surplus-line insurer resources. Accessed 2026-09-28.
  12. Consumer Complaint Center. California Department of Insurance; Consumer Complaint Center entry point to file an insurance complaint. Accessed 2026-09-28.
  13. Commercial Insurance Guide (Form 700, revised June 14, 2024). California Department of Insurance; Form 700 revision beneath heading; What Should I Expect from a Broker-Agent: CDI licensing role (line 333); Surplus Line Insurance: broker disclosure, limited CDI jurisdiction and CIGA exclusion (lines 448–449); Talk to Us: consumer hotline (line 942). Page retrieved September 28, 2026; revision date is not an access date. Accessed 2026-09-28.
  14. 2024 Annual Report of the Commissioner. California Department of Insurance; Page 169: surplus-line brokers pay 3.00% of surplus-line premiums under CIC § 1775.5. Accessed 2026-09-28.
  15. California Insurance Code § 1775.5. California Legislature; §1775.5(a) 3% of gross premiums less returns and specified exclusions; (b) entire-premium rule and separate interstate-motor-transit deductions; (e) defined blended finite-risk and risk-financing terms. Accessed 2026-09-28.
  16. 15 U.S.C. §8201: Reporting, payment, and allocation of premium taxes. U.S. House of Representatives, Office of the Law Revision Counsel; §8201(a) exclusive home-State premium-tax authority; (b)(1) interstate allocation procedures; (c) allocation reporting. Accessed 2026-09-28.
  17. 15 U.S.C. § 8205: Streamlined application for commercial purchasers. U.S. House of Representatives, Office of the Law Revision Counsel; §8205(1)-(2): broker disclosure that admitted insurance may or may not be available with greater protection and oversight, then purchaser written request; ECP eligibility separately defined in §8206(5). Accessed 2026-09-28.
  18. 15 U.S.C. § 8206, Definitions. U.S. House of Representatives, Office of the Law Revision Counsel; §8206(5) ECP eligibility including qualified risk manager, prior premiums and adjusted size/other criteria; (6) home State and affiliated-insured rules; (13) qualified risk manager. Accessed 2026-09-28.
  19. California Insurance Code § 1760.5. California Legislature, Legislative Counsel; §1760.5(g): premiums placed under the special-lines license are not subject to the §1775.5 broker tax. Accessed 2026-09-28.
  20. CDI FS-006, Surplus Line Broker and Special Lines Surplus Line Broker Insurance (Premium) Tax Return Instructions, revised 2025-11, calendar-year 2025. California Department of Insurance; Calendar-year 2025 instructions revised November 2025; page 2, lines 1–4: fees, outside-US risks, returns and 3%; page 5: allocation percentages informational. Accessed 2026-09-28.
  21. Association Constitution. Surplus Line Association of California; ArticleXV(1) Stamping Office filing function; XV(4) Commissioner-delegated duties subject to approved Plan of Operations. Accessed 2026-09-28.
  22. About the Department. California Department of Insurance; Department overview: insurer solvency oversight, agent/broker licensing, company market-conduct reviews, complaints, and insurance-industry regulation. Accessed 2026-09-29.
  23. California Insurance Code §1763.1. California Legislature; §1763.1(a): Commissioner order after public hearing and statutory findings; Export List exemptions retain confidential written report; restricted classes and continuing review. Accessed 2026-09-29.
  24. Licenses. At-Bay; Current producer introduction and state table; At-Bay Insurance Services LLC; P&C and surplus-lines identifiers. Accessed 2026-09-21.
  25. Licenses and Carriers. Coalition; Licenses and Carriers, re-read 22 September 2026: Insurance Licenses table for Coalition Insurance Solutions, Inc., national producer number 18419475, with producer and surplus-lines numbers for all 50 states and DC including California 0L76155, Georgia 196479, Texas 2199630 and 2205589, Pennsylvania 815731 and 817452, Colorado 539028 and Wisconsin 3000108852. Insurance Carriers table naming, with NAIC numbers, Allianz Underwriters Insurance Company 36420, Arch Specialty Insurance Company 21199, Ascot Specialty Insurance Company 45055, Ascot Insurance Company 23752, Aspen Specialty Insurance Company 10717, Chaucer Insurance Company DAC, Coalition Insurance Company 29530, Fireman's Fund Indemnity Corporation 11380, Fortegra Specialty Insurance Company 16823, Lloyd's of London, MSIG Specialty Insurance USA Inc. 34886, MS Transverse Specialty Insurance Company 41807, Steadfast Insurance Company 26387, Vantage Risk Specialty Insurance Company 16275 and Zurich American Insurance Company 16535. Accessed 2026-09-22.
  26. Insurance Producer Licenses. Corgi Insurance; Current complete Insurance Producer Licenses table for Corgi Insurance Services, Inc.; 50 rows covering 49 states and DC (DC 3003091619); no New Mexico row; no NPN or as-of date shown. Accessed 2026-09-28.
  27. Legal Information. Gallagher Small Business; Producer identification immediately above Quick Links. Accessed 2026-09-16.
  28. About Hiscox US Insurance. Hiscox; Hiscox Insurance Company Inc. NAIC 10200 as Chicago, IL domiciled insurer admitted or licensed in all 50 states and D.C.; Hiscox Inc. as general agent and Lloyd’s coverholder for Syndicates 33 and 3624; surplus-lines placements through licensed surplus-lines brokers; A.M. Best rating statement. Accessed 2026-09-16.
  29. Licenses. ERGO NEXT Insurance; Current entity-by-state license table reopened 28 September 2026: 50 rows under Next First Insurance Agency, Inc., including Washington, DC; New York rows instead list Next Insurance Services PC-1423070 and AP Intego BR-1198885. Accessed 2026-09-28.
  30. Licenses & Disclosures. RiskCube; Property & Casualty Producer/Broker Licenses; February 11, 2026 version. Accessed 2026-09-16.
  31. Insurance Licenses by State. TechInsurance; Current state table; identifies TechInsurance as a division of Specialty Program Group LLC d/b/a SPG Insurance Solutions; lists DC 3000041536 and labels Rhode Island “Individual licenses,” without an agency license number. Accessed 2026-09-28.
  32. Hartford Fire Insurance Company. California Department of Insurance; NAIC 19682; California Company ID 0085-1; authorized 01/07/1870; license status UNLIMITED-NORMAL; property and casualty; Connecticut domicile. No expiry/renewal field. Accessed 2026-09-28. Accessed 2026-09-28.
  33. Company Profile — Travelers Indemnity Company (The). California Department of Insurance; NAIC 25658; California Company ID 4772-0; authorized 06/17/2002; license status UNLIMITED-NORMAL; property and casualty; Connecticut domicile. No expiry/renewal field. Accessed 2026-09-28. Accessed 2026-09-28.
  34. Licenses. Vouch; Effective 16 January 2025: Vouch Specialty Insurance Services, LLC, NPN 19926463; P&C table (50 states and DC); surplus-lines table includes Idaho 870820; footnote says Georgia and Idaho do not issue agency-level surplus-lines licenses; Idaho retained as producer-only due to conflict. Accessed 2026-09-15.

Updated .

This guide is informational and does not determine whether a policy is available or meets your needs. Editorial policy. To suggest a correction, contact Spot with a supporting source.

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