Surety Bonds & Credit Ratings

Over the years CSLB has received many questions about the cost of surety bonds and what criterion is used by surety companies to determine qualifications and bond premium costs.

CSLB does not have any authority in this area. The California Department of Insurance (CDI) regulates the surety companies independent of CSLB. Below is a link to a 2010 letter from CDI to the Registrar of Contractors.

The letter was issued in response to a request for information about the use of credit scores by bond companies as a means to help determine the cost of a contractors’ bond. The request was made after the merger of American Contractors Indemnity Company (ACIC) and Surety Company of the Pacific (SCP).

CDI Letter (July 26, 2010)