Bonds California contractors need
| Bond | Amount | When it is required |
|---|---|---|
| Contractor license bond | $25,000 | Every licensed contractor, filed with CSLB |
| LLC employee/worker bond | $100,000 | LLCs, in addition to the license bond and the LLC's required liability insurance |
| Qualifier bond | $25,000 | Required when the person qualifying the license is not an owner or officer |
| Bid, performance and payment bonds | Set by the project | Public works and many private commercial contracts |
Note: Check CSLB for current requirements before you file.
What the license bond does
The license bond protects customers and workers, not the contractor. If a licensed contractor violates the Contractors State License Law, the surety can be required to pay a valid claim, and the contractor must repay the surety. It is not liability insurance and does not pay for property damage or injuries.
Keeping the bond active
- When a bond is cancelled, CSLB gives a 30-day notice. If no replacement is filed by the end of that period, the license is suspended
- A suspended license means you cannot legally work and may not be able to collect payment for work done while suspended
- Make the new bond's effective date the same as the old bond's cancellation date
- In CSLB's September 2026 license file, 8,996 licenses were suspended for a bond problem, the largest suspension reason on the file
Bonds on larger jobs
A bid bond shows you will sign the contract if you win. A performance bond guarantees you complete the job. A payment bond guarantees your subcontractors and suppliers get paid. Public agencies commonly require them and some private owners do too. Approval depends on your financials, credit and work history.
Get a bond
Tell us your license number and what you need and we will quote it. Call (858) 925-9555 or request a review online — only your name, phone and email are required; we collect project details by phone. Asena Capital Insurance Services, CA License #6008596.
Frequently asked questions
How much is the California contractor license bond?
$25,000.
Is the license bond the same as insurance?
No. The bond protects customers and workers by guaranteeing you follow the license law. Insurance covers accidents and damage.
What happens if my contractor bond is cancelled?
CSLB gives 30 days to file a replacement. If none is received by the end of that period, the license is suspended.
Does an LLC need a different bond?
Yes. An LLC needs the $25,000 license bond plus a $100,000 employee/worker bond, and its required liability insurance.