Contractors in California are required to obtain $15,000 surety contractors’ license bond. By getting a contractor’s license bond, principals (contractors) promise to comply with the provisions of Division 3, Chapter 9 of the Business and Professions Code. The license bond protects affected parties from financial loss up to the full amount of the bond if the principal fails to comply with the letter of the law and the terms of the surety bond agreement. The principal must reimburse the surety for all damages paid out.

These bonds remain in full force and effect typically on an annual bases or until canceled.

The applicant’s license or application number and classification(s) are required to bind and obtain bond.

For licensing information, visit the Contractors State License Board website.

Contractors, subcontractors and independent tradesman should carry commercial insurance. It not only protects your business, but it is often a requirement by many employers before you can start working for them. Common trades that need contractors insurance include:

It’s always good to have insurance in case of accidents, even if it isn’t required contractually.

Bond of Qualifying individual bonds ensure that the principals (contractors) act in accordance with all requirements of Division 3, Chapter 9 of the Business and Professions Code. If the principal fails to comply with these terms, the bond protects harmed parties from financial loss up to the full bond amount.

For more information about qualifying individual requirements, visit the California Contractors State License Board’s website.

The California Contractors State License Board (CSLB) requires certain contractors to obtain a contractor’s disciplinary bond before performing work within the state. These bonds are required on a case-by-case basis, and contractors should verify their required bond amount with the state prior to applying for a disciplinary bond.
Some contractors need to post $12,500 qualifying individual bonds prior to conducting business within the state.
Contractor’s disciplinary bonds in California ensure that the principals (contractors) act in accordance with the provisions of Division 3, Chapter 9 of the Business and Professions Code. If the principal neglects to comply with these terms, the bond protects any persons who are harmed up to the full amount of the bond. The principal must reimburse the surety for all damages paid out.
Applicants will need to explain why the bond is being required. The contractor’s license number and classification(s) are will also be required for to bind and obtain this bond. 

For more information about disciplinary bond requirements, visit the California Contractors State License Board’s website.

One of the most significant factors that affects your contractors insurance rate is years in business and credit history. Due to the nature of bonds, a credit check is required to receive a proper rate.

At Coral Point Insurance we specialize in customizing your quote to match your specific business needs which allows us guarantee you the most accurate quote, with the best coverage at the greatest rate.