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Contractor's License Bonds
A Contractor’s License Bond is required by the state of California for all contractors. It protects you against the following:
Work Left Incomplete
If for whatever reason a contractor does not complete a job in progress, the consumer may file a complaint against their bond.
Consumer Property Damage
A contractor license bond is a legally binding contract that protects customers against property damage, up to the value of the bond. These bonds differ from construction bonds, which specifically cover public projects.
Bonds are a guarantee to the State of California that if there is no other remedy a consumer can seek against your business, such as a General Liability Insurance policy, the bond will compensate the consumer up to $15,000. However, contractors must then repay the bonding company for any pay-out made.
If there are problems with your workmanship and there is no other remedy to pursue, a consumer may file a complaint against your bond for up to the full amount of $15,000. You will then be required to reimburse the bonding company for whatever was paid out.
A license bond is based on creditworthiness. This is due to the fact that if the bond company has to pay out a claim, you are required to reimburse them. Strong credit will allow you to obtain preferred bond pricing, while credit issues may mean the bond premium you pay per year is higher.
The ultimate objective of a license bond is to use it as a last resort. Fulfilling all the terms of your contract on time and carrying a General Liability Insurance policy can reduce the risk that someone will file a claim against your bond. However, the state requires that this minimum protection be in place for the consumer to seek a remedy if necessary.
Why a Contractor's License Bond is a Requirement in California
Contractors are required to obtain a $15,000 license bond and submit the filing to the CSLB annually in order to maintain an active contactor license. This bond assures the public that they will receive compensation up to $15,000 if a contractor fails to comply with licensing regulations such as: abandoning a job, engaging in fraud, failing to repair damages caused to a homeowner’s property, and more.
Alternatively, the CSLB will accept a cashier’s check or a bank-certified check in the amount of $15,000 as collateral if a contractor does not wish to purchase a contractor’s license bond. However, most contractors would prefer to pay the bond premium of $100+ rather than a $15,000 lump sum.
Contractor’s License Bond quotes have a same-day turnaround and are electronically filed with the CSLB within 24 hours of purchasing the bond. Contact us today for a free quote.
What is the Cost of a Contractor's License Bond?
HOW IT WORKS
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Your assigned insurance agent will shop various bond companies to find you the best price. The purchase process is expedited through use of e-signature and e-payment services.
Get Your License Bond to the CSLB Quickly
Most bonds are instant-issue and your bond can usually be transmitted electronically to the CSLB same-day.
CSIA, Inc. is a woman-owned and operated insurance agency in San Diego, California.
We Locate the Best Coverage at the Best Price. That’s Our Trade Secret.
Owner Renee Powell has over 25 years of experience in the construction trade business and has helped hundreds of contractors. Our competent staff helps clients obtain General Liability, Commercial Auto, Workers’ Compensation, Bonding, Property, Excess Coverage, Course of Construction, Tools and Equipment Coverage, and many other construction-related insurance policies. We also insure many other types of commercial businesses, from small nail salons to large real estate investment companies.
We have proudly assisted California contractors and commercial businesses in locating the coverage they need since opening our doors in 2006. We’re here to serve you and help your business stay in compliance with CSLB guidelines and contract requirements. As specialists focusing on the building trades, we understand your unique business has special needs. That’s why we employ a staff of dedicated specialists to help you find the right coverage quickly so you can get on the jobsite.
As an independent insurance agency, we don’t work for the insurance carrier – we work for you. Every member of our staff has been with our agency for over 10 years. We keep your needs in mind as we shop for pricing and coverage at every renewal. You can always expect to hear from us about your policies and options, offering a personal touch not often found with other insurance agencies. Typical response time for all requests is within 24 hours. We can quickly have you quoted, have your coverage in place, and have a certificate in your hand to get you to work. Our duty is always to our client’s best interests. Our extensive knowledge of contractor insurance coverages as well as job contracts will help you find the coverage that best suits your needs. Call today for a free consultation…you’ll be glad you did.
Why Choose Us to Quote Your Contractor's License Bond
Our Happy Clients
Frequently Asked Questions About Contractor License Bond Insurance
What is the difference between CSIA and other insurance agencies in San Diego?
We are a small insurance agency with an all-female staff based out of San Diego, California. We provide responses to requests within 24 hours and typically have same-day turnaround on certificates of insurance within 24 hours. All clients have direct access to their insurance agent and will not have to speak with a customer service representative who is unfamiliar with their specific needs.
Do you provide free Contractor's License Bond Quotes?
Yes, all insurance quotes are free. There is no obligation to bind coverage or to provide a payment in order to receive a quote. With access to several quick-rating products and underwriters who will expedite pricing, we can provide you with the lowest bond quote available.
Can I cancel a Contractor's License Bond after I purchase it from you?
We can assist you with the cancellation of your bond if needed. You are under no obligation to remain with our agency after you’ve purchased a bond, however, many do not offer a return premium amount due to the cost of the bond being so low.
What do you charge for your services?
Most commercial insurance agents apply a broker fee to a quote, and our office is no exception. However, our fees are always reasonable and spelled out clearly in the terms of the quote. This fee represents the years of knowledge, time, and effort that go into shopping dozens of markets for the best price and coverage, as well as the annual servicing to include: assistance with claims, certificates, policy changes, renewal reviews, and more. There are also many types of policies where an additional fee is not applied, such as most personal lines insurance. We are confident you will agree our services are second to none – call us for a contractor insurance quote today!
What are the advantages of purchasing a License Bond Insurance from CSIA?
All of our insurance specialists have a minimum of 10 years’ experience in the construction insurance industry. We understand you need to keep your license active and in good standing. We can provide instant-issue bond quotes and the bond is sent to the CSLB right away, typically with 24 hours.
How do I get a License Bond quote?
Request a Quote
Click the button below to complete an online application. You’ll receive a call from an Insurance Specialist the following business day
We Can Provide Quotes For:
General Liability Insurance, Commercial Property Insurance, Workers Compensation Insurance, Commercial Auto Insurance, Tools/Equipment coverage, Builders Risk, Excess Liability, E&O, Special Events coverage, Health insurance, Homeowners/Renters Insurance, Personal Auto, RV, Watercraft/ATV, Motorcycle, Boats, and more.