Contractors in California are regulated by the Contractors State License Board (CSLB). As of this writing, according to this regulatory body, there are currently around 290,000 licensed contractors of different classifications in the state.
In order to pursue a career as a contractor in California, the CSLB requires a surety bond to be posted. Without the bond, no license will be issued. It is also important to keep the bond active. Should it lapse for any reason, a contractor is obligated to suspend business operations until a new surety bond has been purchased.
The contractor bond is required to ensure that the public is protected from contractors who engage in fraud, deceit, willful negligence, or other acts of malfeasance in the performance of their contractor duties.
To be a contractor in California, a surety bond will need to be posted in one of two amounts:
We hasten to add, you do not get to select which bond you want. The amount that you will purchase will depend on your particular situation.
The $15,000 bond is for a Contractor License; the $12,500 bond is for a qualifying individual.
Additionally, if the state suspends or revokes a contractor license for any reason, to reinstate the contractor license, the state can require you to purchase another bond ---in an amount determined by the CSLB --- in addition to the $15,000 surety bond. In effect, there would be two different bonds active.
Some contractors may think that a contractor bond is a "form" or "type" of liability insurance. This is completely erroneous.
A contractor surety bond is required by the CSLB, and it protects the public. It does not protect the licensed contractor.
If a surety company, for instance, pays on a contractor surety bond, the contractor must repay the surety bond for all associated costs and fees (including, if any, attorney fees). To fail to do so will result in the suspension of the contractor license until the fees are satisfied.
A contractor liability insurance policy, however, is insurance purchased by a contractor which protects the contractor. This insurance, while very wise to have, is not required to become licensed as a California contractor.
AmeriPro Surety Bonds will help you obtain your California contractor bond (and, we also provide all types of surety bonds for all 50 states), but we are more than that.
We value you as a customer and we would like to be your source for all your surety bond needs. We don't want to merely issue your bond and leave it at that. But we always both welcome and encourage your phone calls, concerns, and correspondence as it relates to all matters surety bond related.
Call AmeriPro Surety Bonds today at 844-589-9736.