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Commercial Bonds

We offer many different types of license and permit bonds.

For example:

     As a condition of licensure, contractors are required to post some form of security deposit with the Contractors State License Board (CSLB). Surety bonds are commonly used for this purpose, but cash or certificates of deposit may also be posted. A surety bond is a contract in which a surety company promises the State of California that the contractor will comply with the Contractors’ State License Law (CSLL) [Chapter 9 of Division 3 - commencing with Section 7000 - of the Business and Professions (B&P) Code.] 

     Generally, the contractor’s obligation is to not commit any violations of the CSLL that are grounds for disciplinary action against the license. Th e law describes specifi c violations that the bond will cover. If the contractor does not comply with the conditions of the bond, a consumer, supplier or an employee may file a claim against the bond. (B&P Code Section 7071.5) A surety bond should not be confused with an insurance policy since there are important distinctions between the two. One important difference is that the contractor remains liable for his or her own obligations, and must repay the surety for losses incurred by the surety as a result of the contractor’s actions.

Contractor License Bond Details:

     The bond amount is $15,000. Preferred Rates automatically apply to new licensees (No credit check required). If licensed previously under any other name or entity, a credit check will be required. The rate for the bond is valid for all classifications excluding roofing(C-39) and swimming pool (C-53). The bond guarantees compliance with all California license standards. 

     The California Contractors State License Board (CSLB) issues licenses to contract in particular trades or fields of the construction profession. Each separate trade is recognized as a “classification.” Licensed contractors may add any classification for which they are qualified. Classification statutes are cited from California Business and Professions Code Sections 7008 and 7056-7059. CSLB issues licenses for the following classifications:

Class “A” — General Engineering Contractor
     The principal business is in connection with fixed works requiring specialized engineering knowledge and skill.

Class “B” — General Building Contractor
     The principal business is in connection with any structure built, being built, or to be built, requiring in its construction the use of at least two unrelated building trades or crafts.

Class “C” — Specialty Contractor
     There are 41 separate “C” license classifications for contractors whose construction work requires special skill and whose principal contracting business involves the use of specialized building trades or crafts.


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