General Bond Information
This section provides general information on bonds. It also provides helpful tips for maintaining your bond in order to avoid having your license suspended.
- If a license is actively renewed, you must comply with the bond requirements.
- A bond must be written by a surety company licensed through the California Department of Insurance.
- An acceptable bond must be received at the CSLB Headquarter's Office within 90 days of the effective date of the bond.
- A bond remains in effect until the CSLB receives a notice from the Surety Company cancelling the bond.
- Only one bond can be in effect at a time. A second bond filed for the same period cancels out the first bond.
- Bonds are not transferable. A bond cannot be transferred from one license to another or from one qualifying individual to another.
- If purchasing a new bond, make sure that the effective date of the new bond is the same as the cancellation date of the old bond.
- If a license has more than one Responsible Managing Employee or Responsible Managing Officer, each qualifier must comply with the qualifier bond requirements.
- The CSLB cannot return any bond that has been accepted for an active license.
- The CSLB cannot recommend surety companies. You can locate surety (bonding) companies by checking your local yellow pages.
- Failure to maintain continuous bond coverage will result in the license being suspended. Any work performed while the license is suspended is considered to be unlicensed and disciplinary action can be taken against you.
Tips for Avoiding Bond Suspension
- The CSLB's processing times can vary so plan ahead when purchasing a new bond.
- Be sure to renew your existing bond promptly. You should receive an invoice/renewal notice from your surety company prior to the bond expiration date. If you do not receive an invoice/renewal notice, contact your surety company or insurance agent.
- Remember, license renewal dates and bond renewal dates rarely coincide. Be sure to know each renewal date.
- If you receive a bond suspension notice from the CSLB, resolve the problem immediately.
- Keep your business address current with the CSLB so you receive notices regarding bond cancellations.
- Keep accurate records on your agent, surety company, bond numbers, effective dates and terms of the bonds.
- Remember, it is ultimately the responsibility of the contractor to make sure you are in compliance with the bond requirements.