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CSLB Contractor Bonds · Surety

The $25,000 California contractor license bond, filed fast.

The $25,000 contractor bond the CSLB requires to keep a license active, plus related surety bonds for California contractors.

Quick answer A California contractor license bond is the $25,000 surety bond the Contractors State License Board (CSLB) requires for a contractor to keep a license active.

  • A contractor license bond protects consumers and others harmed by violations of contractor license law, not the contractor; if the surety pays a claim, it expects the contractor to repay it.
  • Under Business and Professions Code 7071.6, the $25,000 bond is a condition of issuing, reactivating, renewing or maintaining a California contractor license, written by an admitted surety the Department of Insurance has authorized.
  • Before issuing a contractor license bond, the surety underwrites the owners and the business, including credit history.
  • A contractor license bond is cancelled 30 days after the CSLB receives the surety's notice, and the license is suspended if no reinstatement notice or replacement bond arrives before then.
  • A contractor license bond does not guarantee job completion or payment of subcontractors; project owners and general contractors ask for separate contract bonds such as bid, performance and payment bonds.

By Sam Alishahi · CA Insurance License #4348151 · Reviewed October 2026 · How this page is researched

How it works

A bond isn’t insurance for you

A contractor license bond protects consumers and others who are harmed by violations of contractor license law. If the surety pays a claim, it expects the contractor to repay it.

The CSLB requires a $25,000 contractor bond for an active license. The surety underwrites the owners and the business, including credit history, before it issues the bond.

  • Bond amountThe CSLB requires a $25,000 contractor bond.
  • UnderwritingThe surety looks at the owners, the business and credit history before it issues the bond.
  • FilingThe surety files the bond with the CSLB.
  • Other bondsSome licenses also need other bonds, and projects may require performance and payment bonds.
Common situations

Contractors I help

New licenses

A bond filed so the license can be issued.

Credit challenges

Sureties that write contractors with lower credit scores.

Suspended licenses

Replacing a cancelled bond to reinstate a license.

Workers’ comp

Coverage the CSLB also requires. The 2028 workers’ comp change

General liability

Certificates for GCs and clients. See details

Project bonds

Performance and payment bonds for contracts. See details

Before you call

What underwriters will ask

Having these ready means I can go to market on the first call. The quote form asks for the same things, and anything you don’t know yet can wait.

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  • License: CSLB number or application status.
  • Business: legal name and entity type.
  • Owners: names of owners and qualifiers.
  • Classifications: your license types.
  • Timing: when you need the bond filed.
  • Other needs: workers’ comp and liability.

What other states require: license bond amounts by board

The $25,000 figure is California's. Every other board sets its own amount and structure. If your state is not listed, send me the board name and I will pull its form before anything is quoted.

  • California. One $25,000 contractor's bond under B&P 7071.6, a condition of issuing, reactivating, renewing or maintaining the license. It must be written by an admitted surety the California Department of Insurance has authorized, on the form the Attorney General's office approved.
  • Washington. RCW 18.27.040 sets a $30,000 continuous bond for general contractors and $15,000 for specialty contractors. When claims exceed the bond, employee labor is paid first, then breach of contract, then subcontractors and suppliers, then state taxes. A residential homeowner has two years from substantial completion or abandonment to sue; everyone else has one.
  • Oregon. The CCB endorsement chart (11/2024) ties the bond to the endorsement: residential general $25,000, residential specialty $20,000, residential limited $15,000; commercial general Level 1 $80,000, Level 2 $25,000; commercial specialty Level 1 $55,000, Level 2 $25,000. A contractor holding both endorsements files two bonds, one for each.
  • Nevada. No fixed figure. The State Contractors Board sets each bond between $1,000 and $500,000 from license type, monetary limit, financial responsibility, experience and character, and names the figure after the license is approved. A cashier's check is accepted with a $200 biennial fee, and the deposit is held two years after the license ends.
  • Arizona. ARS 32-1152 scales the bond to classification and annual volume: residential general $5,000 to $15,000, residential specialty $1,000 to $7,500, commercial general up to $100,000 at $10 million or more of volume. Residential contractors also post an additional $200,000 bond or pay into the Residential Contractors' Recovery Fund.

In California, Washington and Nevada the bond is continuous until the surety cancels it; in California and Washington the name on it must match the board's record exactly. The rest of a contractor's program by state is on insurance by state.

When a claim is filed on your bond: the contractor's side of B&P 7071.11

This is what happens when someone uses the bond.

  • You get at least 15 days to protest in writing. Before the surety settles a claim through a good-faith payment, B&P 7071.11 gives you not less than 15 days to file a written protest. CSLB tells contractors to respond immediately, explain their position and submit all relevant documentation. The surety investigates the bond claim and CSLB investigates any complaint against the license; the two are resolved independently, so answer both.
  • A paid claim reaches the Registrar within 30 days. The surety reports the license, bond number, amount, statutory basis and payee. If you did not protest, you have 90 days from the Board's notification to submit proof that the surety has been repaid, or a notarized accord with the surety; without it, the license is suspended by operation of law at the end of the 90 days. No license is renewed, reissued or reinstated while a judgment or admitted claim larger than the bond is unsatisfied.
  • Who can collect, and how much. B&P 7071.5 limits claimants to homeowners improving their own residence, owners building a single-family home not for sale, anyone damaged by a willful and deliberate violation or fraud, employees owed wages, and the funds owed fringe benefits. Wage and fringe-benefit claims are capped at $4,000 in aggregate; the bond amount caps everything else. A claimant unhappy with the surety can take you to small claims court for up to $10,000.
  • Time limits. Two years after the license period in which the act occurred expires, or would have expired if the license was inactivated, cancelled or revoked first. Wage claims: within six months of discovering the delinquency, and never later than two years after the money was due.

Call me the day a claim notice arrives, not after the surety has paid.

Filing rules that trip contractors up, and how to confirm the bond is on CSLB's record

Most suspensions I see are not about money. They are about a bond that was bought and never landed, or landed under the wrong name.

  • The 90-day receipt rule. An acceptable bond must reach CSLB headquarters within 90 days of its effective date. A later bond is accepted retroactively under B&P 7071.7 only if CSLB's Request for 7071.7 Bond Acceptance (form 13B-31) shows the failure was due to circumstances beyond your control.
  • Match the record exactly. The business name and license number on the bond must correspond exactly with CSLB's records. Report any change to the license within 90 days under B&P 7083, and a bond does not transfer between licenses or between qualifying individuals.
  • Cancellation runs on a 30-day clock. A license bond is cancelled 30 days after CSLB receives the surety's notice; if no reinstatement notice or replacement bond arrives before the 30 days end, the license is suspended. Only one bond can be in effect at a time, so date the replacement to the old bond's cancellation date. A rescission from the surety lifts the suspension if CSLB receives it within 90 days of the cancellation date.
  • Other suspension triggers. The surety loses its Department of Insurance authorization; a judgment or claim payment reduces the bond; an RMO's holding drops under 10% of voting stock, so a qualifier bond becomes due; a disciplinary bond or cashier's check lapses. Work done during a bond suspension is unlicensed contracting.
  • Verify it yourself. After filing, look your license up on CSLB's site; the Contractor's Bond History link on the license detail page is where CSLB sends claimants. If you deposit a cashier's check instead, CSLB pays from it only under a court order and holds it three years after the license period or the license's inactivation, cancellation or revocation, whichever comes first.

A license bond is not the bond a project owner asks for

"Are you bonded?" means two things. CSLB means the license bond, which answers to the claimants in B&P 7071.5 for license-law violations, fraud and unpaid wages. A project owner or GC means contract bonds on a specific job: a bid bond, a performance bond for completion, a payment bond for subcontractors and suppliers. The license bond guarantees neither.

  • California public works. A direct contractor awarded a public works contract over $25,000 must give a payment bond, approved by the awarding officer or entity, before starting work, and the call for bids must say so (Civil Code 9550). Design professionals are exempt, and contracts with state entities (Public Contract Code 7103) are outside the section.
  • Federal work. The Miller Act (40 U.S.C. 3131) requires a performance bond and a payment bond before a federal construction contract over $100,000 is awarded; the payment bond equals the contract amount unless the contracting officer finds in writing that is impractical.
  • Private owners write their own. No statute applies; the contract decides. A certificate of insurance and a bond are different documents, and "bonded and insured" usually means both.
  • Underwriting is different. The license bond is placed on the owner's credit and license history. Contract bonds are placed on the business: year-end financial statements, work in progress, backlog, bank line and the job's size against your largest completed project. Start that file before you bid.

Placement is on surety bonds, the difference between a bond and a policy is on surety bond vs. insurance, and the certificates are on contractor insurance.

Questions

Contractor bonds, answered

How much is the California contractor license bond?

The bond amount the CSLB requires is $25,000. The surety sets its own terms after underwriting the owners and the business.

Is a license bond the same as insurance?

No. A bond protects consumers and others. If the surety pays a claim, the contractor is expected to reimburse it.

Can I get bonded with bad credit?

Often yes, through sureties that specialize in higher-risk bonds; they may ask for more documentation or collateral.

What happens if my bond is cancelled?

The CSLB can suspend the license unless a replacement bond is filed in time.

How do I check whether a California contractor is bonded?

Look the license up on CSLB's site by license number, business name or personnel name, then open the Contractor's Bond History link on the license detail page; it shows which surety wrote the bond in force on your contract date. The database is unavailable Sundays at 8 p.m. through Monday at 6 a.m. for maintenance.

How much is a contractor license bond in Washington state?

RCW 18.27.040 sets $30,000 for general contractors and $15,000 for specialty contractors, and L&I accepts an assigned account (cash, certificate of deposit, time deposit or money market at a bank, savings and loan or credit union with a Washington branch) in place of the bond.

Does a contractor license bond pay unpaid subcontractors?

Not as an ordinary unpaid-invoice claim. In California, B&P 7071.5 limits claimants to homeowners, owners building a single-family home not for sale, victims of a willful violation or fraud, and employees owed wages or fringe benefits. In Washington, subcontractors and suppliers are third in line under RCW 18.27.040, after employee labor and breach-of-contract claims, and all claimants other than residential homeowners share no more than half the bond; a sub's real protection on a job is the owner's payment bond.

Do you offer contractor license bonds outside California?

Yes. Clients across the country send the same quote form. California policies are placed directly; outside California the request is handled together with a partner agency in your state, and the shopping across carriers works the same way. Rules, minimums and markets differ by state — see insurance requirements by state.

Official sources

Contractor bonds

Need a bond filed? Send your license number.

License number, business name and owners are enough to start.

Alishahi Insurance · Saman Alishahi, independent insurance broker, California License #4348151. General information, not a quote or a promise of coverage; coverage depends on underwriting and the terms, conditions and exclusions of the policy actually issued.

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