When applying for a contractors’ license in California, a bond license is needed to receive certification. Without this bond, your application will be denied. There are a few requirements you need to meet when you are applying for your california state contractors license bond. What are those requirements? Continue reading to learn more information about license bonds.
A bond is filed to benefit consumers against liability when hiring a contractor. Without a bond, the consumer can be sued in a court of law if an injury occurs or if defective work/law violations are found. Employees also benefit from the bond, since it secures payment if their employer failed to pay them.
If you wish not to apply for the bond, but still hold all the necessary requirements to work as a contractor in the sate, you may pay a contractor’s bond in the amount of $15,000. The amount for an individual bond is slightly less, at a cost of $12,000.
To get a license, your bond must be written through a California Department of insurance licensed company. The bond amount is $15,000. The bond, date of issuance, and placed with the CSLB Headquarters after it is received.
The amount of the bond varies from one contractor to the next. Several factors influence the rate of the bond. A credit check is used by most insurance companies, as well as factors like experience. It is best that you compare the different companies offering the bonds to get the best rate. The only way to learn the amount of your bond is by speaking with an agent before applying. This is a simple step that can save a lot of time and money and one that you should take when it is time to get your bond.