A California Contractor License Bond is a $15,000 surety bond that is required of all contractors who perform a job exceeding $500. This license bond is necessary in order to protect customers who are working with the contractor. As with most other surety bonds, the Contractor License Bond works as a three-party agreement between the Principal (the contractor), Obligee (the contractor’s state licensing board), and Surety, which provides both the bond as well as any necessary financial backing.
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The premium paid is based on each applicant’s credit score, and in some cases, an applicant’s personal and/or business financials are also considered. Those with a high credit score can expect to pay as little as 1.5% or less of the total bond amount, with the bond amount being $15,00 in this case.
This bond is required by the California Contractors License Board (CSLB) for anyone seeking to obtain a contractor license in the state of California, as mandated by the California Business and Professional Code (ARTICLE 5. Licensing [7065 - 7077]). The bond is required to ensure the protection of the customer during their time working with the contractor.
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The ProSure Group is a bonding company that has been in the surety bond business since 1993. Our bond experts issue hundreds of millions of California surety bonds and license bonds all over the nation every year. We have exclusive partnerships with over 30 different surety bond companies. Our streamlined process ensures that you get the expertise you need in handling your bond needs while we strive to get you the best, most competitive bond pricing and terms available in the marketplace!
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