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, increased 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 February 10, 2023.

• Allegheny Casualty Company
• American Alternative Insurance Corporation
• American Casualty Company of Reading Pennsylvania
• American Contractors Indemnity Company
• American States Insurance Company
• Arch Insurance Company
• Argonaut Insurance Company
• Aspen American Insurance Company
• Atlantic Specialty Insurance
• Berkley Insurance Company
• Berkley Regional Insurance Company
• Berkshire Hathaway Specialty Insurance Company
• Bond Safeguard Insurance Company
• Business Alliance Insurance Company
• Capitol Indemnity Corporation
• Cincinnati Insurance Company (The)
• Colonial Surety Company (only the contractor bond endorsement)
• Continental Casualty Company
• Continental Insurance Company (The)
• Contractors Bonding and Insurance Company
• Employers Mutual Casualty Company
• Endurance Assurance Corporation
• Everest Reinsurance Company
• Federal Insurance Company
• Fidelity and Deposit Company of Maryland
• Financial Pacific Insurance Company
• First National Insurance Company of America
• Granite Re, Inc dba Granite Surety Insurance Company
• Gray Casualty & Surety Company (The)
• Gray Insurance Company (The)
• Great American Insurance Company
• Great Midwest Insurance Company
• Hanover Insurance Company (The)
• Harco National Insurance Company
• Hartford Fire Insurance Company
• Hartford Insurance Company of the Midwest
• Hudson Insurance Company
• Jet Insurance Company
• Lexon Insurance Company
• Liberty Mutual Insurance Company
• Markel Insurance Company
• Merchants Bonding Company (Mutual)
• National Fire Insurance Company of Hartford
• Nationwide Mutual Insurance Company
• Navigators Insurance Company
• Old Republic General Insurance Corporation
• Old Republic Surety Company
• Pacific Indemnity Company
• Philadelphia Indemnity Insurance Company
• Platte River Insurance Company
• RLI Insurance Company
• Safeco Insurance Company of America
• State Farm Fire and Casualty Company
• St Paul Fire and Marine Insurance Company
• SureTec Insurance Company
• Swiss Re Corporate Solutions America
• Swiss Re Corporate Solutions Premier
• The Guarantee Company of North America USA
• The North River Insurance Company
• The Ohio Casualty Insurance Company
• Travelers Casualty and Surety Company
• Travelers Casualty and Surety Company of America
• Trisura Insurance Company
• United Fire & Casualty Company
• United States Fire Insurance Company
• United Surety Insurance Company
• Universal Surety of America
• U S Specialty Insurance Company
• Vigilant Insurance Company
• Wesco Insurance Company
• Westchester Fire Insurance Company
• Western National Mutual Insurance Company
• Western Surety Company
• XL Specialty Insurance Company
• Zurich American 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 $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 $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 $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.