California Contractor License Bond Requirements
Which bonds a California contractor needs, how much they are, where to get them and what happens if a bond lapses.
Quick answer
Every active California contractor license needs a $25,000 contractor bond (or an approved cash alternative). Licenses qualified by a Responsible Managing Employee, or by a Responsible Managing Officer who owns less than 10 percent of the company, also need a $25,000 Bond of Qualifying Individual, and LLCs need a $100,000 LLC Employee/Worker Bond.
The Bonds You May Need
| Bond | Amount | Who needs it |
|---|---|---|
| Contractor bond | $25,000 | Every active license |
| Bond of Qualifying Individual | $25,000 | Licenses qualified by an RME, or by an RMO who owns less than 10% of the voting stock or equity |
| LLC Employee/Worker Bond | $100,000 | Limited liability companies |
| Disciplinary bond | Set by CSLB | Licensees ordered to post one after discipline |
Where to Get a Bond
CSLB does not sell bonds. You buy them through an insurance agent or a surety company licensed by the California Department of Insurance. You pay a premium, not the full bond amount, and the price usually depends on your credit. Most bonds are written for one to three years.
Alternatives to a Bond
Instead of buying a bond, you can deposit the full amount with CSLB as a cashier’s check or certain other deposits, such as certificates of deposit. CSLB lists the accepted alternatives.
When You File Your Bond
Do not send a bond with your application. After you pass your exams, CSLB sends a bond and fee letter that tells you which bonds to file. An inactive license needs no bond.
If Your Bond Is Canceled
If your bond is canceled and not replaced, your license is suspended until a new bond is on file. Any work you do while suspended is unlicensed. See reinstating a suspended license.
Content reviewed against CSLB sources: November 2026
- CSLB: Issuing my license
- CSLB: Bond information
- California Business and Professions Code section 7071.19
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California Contractor License Bond Requirements: FAQs
Is the contractor bond the same as insurance?
No. The bond protects consumers and workers if a contractor violates the law. It does not cover your own losses. LLCs also need liability insurance.
Do I need a bond if my license is inactive?
No. Bonds are required only while a license is active.
How much does a $25,000 contractor bond cost?
You pay a yearly premium to a surety company. The cost varies, mainly based on your credit and business history.