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Contractors State License Board
9821 Business Park Drive
Sacramento, CA 95827
Phone (800) 321-CSLB (2752)

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Surety Bonds & Credit Ratings

This section provides information on the issue of whether surety companies can use a contractor’s credit score to help determine the cost of a bond.

Surety Bonds & Credit Ratings

Before an active contractor license can be issued or renewed, the licensee must have a current contractor bond or approved alternative to a bond on file with CSLB in the amount of $12,500.00. CSLB has no authority over the bond premium amount or the cancellation criterion offered by a surety company; CDI regulates the surety companies independent of CSLB.

Below is a link to a letter from the California Department of Insurance (CDI) to the Registrar of Contractors. The letter was issued in response to a request for information about the use of credit scores by a bond company as a means to help determine the cost of a contractors’ bond.

The request was made in spring 2010 after the merger of American Contractors Indemnity Company (ACIC) and Surety Company of the Pacific (SCP).

Department of Insurance Surety Bond Inquiry Letter