Bond Requirements

Changes to Bond Requirements Effective January 1, 2023

Attention licensed contractors: On January 1, 2023, the contractor license bond, bond of qualifying individual, and disciplinary bond, are increasing to $25,000 as a result of Senate Bill 607 . See more about SB 607 in these Industry Bulletins from October 2022 and December 2021.

Contractors with a license bond on file with CSLB must ensure their contractor bond is increased to the new amount, as follows:

(1) If you have a cashier’s check in lieu of a surety bond: Contact Licensing@cslb.ca.gov about increasing your bond.

(2) If you have a contractor’s bond through a surety company: Contact your surety about increasing your bond or refer to the list below.

List of Surety Companies with a Blanket Endorsement on File with CSLB

Contractor bonds with the following companies will automatically be adjusted to the new $25,000 level. If your surety company is on this list and you have not received information from your surety company about increasing your bond, contact your surety. If your surety company is not on this list, contact your surety.

This list is current as of October 27, 2022, and will continue to be updated.

  • Arch Insurance Company
  • American Contractors Indemnity Company
  • Contractors Bonding and Insurance Company
  • Great American Insurance Company
  • Harco National Insurance Company
  • Markel Insurance Company
  • RLI Insurance Company
  • St Paul Fire and Marine Insurance Company
  • SureTec Insurance Company
  • Travelers Casualty and Surety Company
  • Travelers Casualty and Surety Company of America
  • U S Specialty Insurance Company

Contractor's Bond

A Contractor's Bond must be in place before CSLB can issue an active license, reactivate an inactive license, or renew an active license. (Business and Professions Code Section 7071.6).

The bond 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.

Requirements for the Contractor's Bond:

  • The bond must be written by a surety company licensed through the California Department of Insurance.
  • The bond must be in the amount of $15,000*. (*Effective January 01, 2023 the required amount will increase to $25,000.)
  • The business name and license number on the bond must correspond exactly with the business name and license number on the CSLB's records.
  • The bond must have the signature of the attorney-in-fact for the surety company.
  • The bond must be written on a form approved by the Attorney General's Office.
  • The bond must be received at the CSLB's Headquarters Office within 90 days of the effective date of the bond.

Bond of Qualifying Individual

In addition to a Contractor's Bond, a Bond of Qualifying Individual may be required for the issuance of an active license, reactivation of a license, and for the maintenance of an actively renewed license (Business and Professions Code Section 7071.9).

A Bond of Qualifying Individual is required if the license is qualified by a Responsible Managing Employee (RME). A Bond of Qualifying Individual is required if the license is qualified by a Responsible Managing Officer (RMO) who does not own at least 10% of the voting stock of the corporation. If the RMO owns 10% or more of the voting stock of the corporation, they must complete and submit a Bond of Qualifying Individual Exemption Certification.

If a license has more than one RME or RMO qualifying the license, each qualifier must comply with the qualifier bonding requirements.

Requirements for the Bond of Qualifying Individual:

  • The bond must be written by a surety company licensed through the California Department of Insurance.
  • The bond must be in the amount of $12,500* (*Effective January 01, 2023 the required amount will increase to $25,000.)
  • The business name, license number, and qualifier's name on the bond must correspond exactly with the information on the CSLB's records.
  • The bond must have the signature of the attorney-in-fact for the surety company.
  • The bond must be written on a form approved by the Attorney General's Office.
  • The bond must be received at the CSLB's Headquarters Office within 90 days of the effective date of the bond.

Disciplinary Bond

If a license has been revoked for a violation of the Contractors' License Law, the company must file a disciplinary bond with the Registrar in order to reinstate or reissue the license (Business and Professions Code Section 7071.8).

Requirements for the Disciplinary Bond:

  • The disciplinary bond must be filed in addition to any other bond(s) required on an active contractor's license. The disciplinary bond cannot take the place of or be combined with any other bond(s).
  • The Registrar will determine the bond amount, which is based on the seriousness of the violation(s). The amount may not be less than $15,000* (*Effective January 01, 2023 the required amount will increase to $25,000.) nor greater than ten times the amount of the contractors' bond.
  • The disciplinary bond must remain current and on file with the Registrar for at least two years. In some cases, the Registrar may require a longer filing period.
  • The company's license must remain active and current while the disciplinary bond is on file.
  • The bond must be written by a surety company licensed through the California Department of Insurance.
  • The business name and license number on the bond must correspond exactly with the business name and license number on the CSLB's records.
  • The bond must have the signature of the attorney-in-fact for the surety company.
  • The bond must be written on a form approved by the Attorney General's Office.
  • The bond must be received at the CSLB's Headquarters Office within 90 days of the effective date of the bond.