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Overview
A CSLB bond is a $25,000 guarantee required by the California State License Board for all licensed contractors. Instead of protecting the contractor, it protects the public—homeowners, employees, and suppliers—if a contractor violates state law. Think of it as a safeguard ensuring accountability and financial protection.
Purpose of CSLB Bonds
- Consumer Protection: Safeguards homeowners, employees, and suppliers against financial harm.
- Legal Requirement: A CSLB bond is mandatory—no bond means no valid license.
- Credibility: Shows clients the contractor is licensed, compliant, and backed by a surety.
- Accountability: Creates financial consequences for misconduct or violations.
Cost of CSLB Bonds
Contractors don’t pay $25,000 upfront. Premiums usually run $100–$500 per year for contractors with good credit, higher for riskier profiles.
Key Considerations
- Bond Amount: Fixed at $25,000 by law.
- Renewal: Must be kept active; lapses can suspend a license.
- Claims: Contractors are ultimately responsible for reimbursing claims.