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Contractors License

Contractors License

Contractor license surety bonds help ensure that contractors comply with California contractors license law.

As a condition of their licensure, contractors are required to post a $15,000 security deposit with the Contractors State License Board (CSLB) in the form of bonds, cash, or certificates of deposit.

Contractors license bonds are legally-binding contracts between three parties:

  • TheĀ obligeeā€”is the government agency requiring the contractor license bond
  • TheĀ principalā€”the contractor purchasing the bond
  • TheĀ suretyā€”the underwriter providing the contractor license bond

    • A surety bond is not an insurance policy. 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. Contractors are liable for their own contractual obligations and must repay the surety bond for any damages incurred.

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