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Licensed Contractors Urged to Make Sure They Increase Bond Coverage to $15,000 Before End of Year; Applies to All Licensees

SACRAMENTO — California law (Business and Professions Code Section 7071.6) requires all contractors to have either a contractor’s bond or cash deposit filed with the Contractors State License Board (CSLB). The bond or cash deposit is filed for the benefit of consumers who may be damaged as a result of defective construction or other license law violations, and for the benefit of employees who have not been paid wages that are due to them.

On January 1, 2016, the amount of the bond is increasing from $12,500 to $15,000. CSLB urges all contractors to make sure they’ve got their new bond or cash deposit in-place by that date.

Contractors who don’t meet the deadline risk having their license suspended.

If you haven’t been informed about the new $15,000 limit by your bond company, it’s important that you contact them immediately, so you can comply with the new law. Note that the bond of qualifying individuals will remain at $12,500.

Recently passed legislation (Senate Bill 467) raised the contractor bond required of all licensees from $12,500 to $15,000 at the start of the new year. The legislation also eliminated the requirement that contractor applicants prove they have $2,500 in working capital as a condition of obtaining a CSLB license.

The following is a list of surety companies that have a Blanket Endorsement on file with CSLB. That means bonds for all of their clients will be automatically be adjusted to the new $15,000 level.

If you have your bond with one of the following companies, you can be rest assured your $15,000 bond will be in-place on January 1, 2016.

Please note, this list was last updated on January 20th, 2016:

  • Aegis Security Insurance Company
  • Allegheny Casualty Company
  • Allied World Insurance Company
  • Amco Insurance Company
  • American Casualty Company of Reading, Pennsylvania
  • American Contractors Indemnity Company
  • American Safety Casualty Insurance Company
  • American States Insurance Company
  • Arch Insurance Company
  • Argonaut Insurance Company
  • Aspen American Insurance Company
  • Atlantic Specialty Insurance Company
  • Bankers Insurance Company
  • Berkley Insurance Company
  • Berkley Regional Insurance Company
  • Bond Safeguard Insurance Company
  • Business Alliance Insurance Company
  • Capitol Indemnity Corporation
  • Cincinnati Insurance Company
  • Colonial American Casualty and Surety Company
  • Continental Casualty Company
  • Continental Insurance Company
  • Contractors Bonding and Insurance Company
  • Developers Surety and Indemnity Company
  • Employers Mutual Casualty Company
  • Endurance Reinsurance Corporation of America
  • Evergreen National Indemnity Company
  • Federal Insurance Company
  • Fidelity and Deposit Company of Maryland
  • Financial Pacific Insurance Company
  • First National Insurance Company of America
  • General Insurance Company of America
  • Great American Insurance Company
  • Hanover Insurance Company
  • Hartford Fire Insurance Company
  • Hudson Insurance Company
  • Indemnity Company of California
  • International Fidelity Insurance Company
  • Ironshore Indemnity Inc.
  • Lexon Insurance Company
  • Liberty Mutual Insurance Company
  • Medmarc Casualty Insurance Company
  • Merchants Bonding Company (Mutual)
  • National Fire Insurance Company of Hartford
  • National Indemnity Company
  • Nationwide Mutual Insurance Company
  • Navigators Insurance Company
  • North American Specialty Insurance Company
  • Old Republic General Insurance Corporation
  • Old Republic Surety Company
  • Pacific Indemnity Company
  • Philadelphia Indemnity Insurance Company
  • Platte River Insurance Company
  • RLI Insurance Company
  • Safeco Insurance Company of America
  • Sentry Select Insurance Company
  • St. Paul Fire and Marine Insurance Company
  • State Farm Fire and Casualty Company
  • State National Insurance Company Inc.
  • SureTec Indeminity Company
  • SureTec Insurance Company
  • The Guarantee Company of North America USA
  • The Ohio Casualty Insurance Company
  • Travelers Casualty and Surety Company
  • Travelers Casualty and Surety Company of America
  • U.S. Specialty Insurance Company
  • United Fire & Casualty Company
  • United States Fidelity and Guaranty Company
  • Vigilant Insurance Company
  • Washington International Insurance Company
  • Wesco Insurance Company
  • Westchester Fire Insurance Company
  • Western National Mutual Insurance Company
  • Western Surety Company
  • XL Specialty Insurance Company

 

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