Quick answer: every active California contractor license needs a $25,000 contractor's bond on file with CSLB (Bus. & Prof. Code §7071.6). Some licenses need more. Many qualifiers need a separate $25,000 bond, an LLC needs a $100,000 bond for its workers, and a contractor whose license was suspended or revoked for discipline must post an extra bond.
Last verified against the statutes and CSLB's licensing guide: October 28, 2026.
Quick reference: bond amounts
| Bond | Amount | Who needs it | Source |
|---|---|---|---|
| Contractor's bond | $25,000 | Every active license | §7071.6(a) |
| Contractor's bond, unlicensed-contracting history | CSLB may require twice the normal amount ($50,000), until the license is renewed | Applicants convicted under §7028, or cited under §7028.7 with the citation now a final order, where the violation caused substantial injury to the public | §7071.6(d) |
| Bond of qualifying individual | $25,000 | A qualifier who is not the proprietor, a general partner or a joint licensee (exceptions below) | §7071.9 |
| LLC/worker bond | $100,000, on top of the $25,000 contractor's bond | LLC licenses, whether issued active or inactive | CSLB: Get Licensed to Build |
| Disciplinary bond | Set by the registrar: at least $25,000, at most 10 times the §7071.6 amount ($250,000) | Licensees and personnel tied to a suspended or revoked license | §7071.8 |
| Judgment bond | Equal to the unpaid final judgment(s) | Applicants or licensees with unsatisfied final judgments | §7071.17 |
The $25,000 contractor's bond
CSLB requires the $25,000 bond before it issues, reinstates, reactivates or renews a license, and the licensee must keep it on file to keep the license (Bus. & Prof. Code §7071.6).
Key points for the exam:
- Inactive licenses don't need the contractor's bond. No contractor's bond is required while a license is inactive on CSLB's records (§7071.6(c)). The inactive-license rule also waives the disciplinary bond and the qualifier bond (§7076.5(d)). An LLC must file its $100,000 worker bond whether the license is issued as active or inactive (CSLB: Get Licensed to Build).
- The surety must be admitted. The bond is executed by an admitted surety in favor of the State of California and filed with the registrar (§7071.5).
- CSLB does not sell bonds. You buy them from an insurance agent or from a company licensed by the California Department of Insurance (CSLB: Get Licensed to Build).
- Late bonds can still count. A bond the registrar receives within 90 days of its effective date counts from that date, and the license is reinstated back to it if otherwise eligible. After 90 days, the licensee must show the gap was beyond its control (§7071.7).
- Letting the bond lapse puts the license at risk. A license without a sufficient bond is subject to suspension or revocation (§7071.15).
Bond amount vs. what you pay
The $25,000 is the most the bond can pay out, not what it costs to buy. Neither the statute nor CSLB's guide lists a premium, so we don't quote one.
The bond of qualifying individual ($25,000)
The qualifier is the person whose experience and exam qualify the license. If the qualifier is not the proprietor, a general partner or a joint licensee, the qualifier must file a separate $25,000 qualifying individual's bond. This bond is in addition to the contractor's bond and may not be combined with it. (§7071.9(a))
Who does not need it:
- A sole owner who qualified by personal appearance, or a general partner who is the qualifier (§7071.10).
- A responsible managing officer (RMO) who owns 10 percent or more of the corporation's voting stock and certifies that on the registrar's form (§7071.9(c)).
- An LLC qualifier who owns at least a 10-percent membership interest and certifies that on the registrar's form (§7071.9(d)).
- A qualifier for a federally recognized tribe or participating tribe (§7071.9(a)(2)).
The statute gives no ownership exemption to a responsible managing employee (RME), so an RME qualifier needs the bond.
The $100,000 LLC/worker bond
An LLC license needs a $100,000 surety bond in addition to the $25,000 contractor's bond, whether the license is issued as active or inactive. It is for employees or workers damaged by the LLC's failure to pay wages, interest on wages, fringe benefits or other contributions. (CSLB: Get Licensed to Build)
An LLC also needs liability insurance: at least $1,000,000 aggregate with five or fewer people on the personnel of record. With more than five, add $100,000 for each additional person listed, up to $5,000,000 total (§7071.19; CSLB: Get Licensed to Build).
Cash deposit instead of a bond
You can meet a bond requirement in only two ways: a bond from an admitted surety insurer, or a deposit with the registrar under Code of Civil Procedure §995.710(a)(1). No other method of deposit, including a certificate of deposit, counts. (§7071.4(a)) CSLB's guide describes the deposit option as a cashier's check (CSLB: Get Licensed to Build).
Rules that apply only to deposits:
- After written notice of a civil action against the deposit, it is released only as a court decides (§7071.4(c)).
- Most claims against a deposit get three years from the end of the license period in which the act happened, or from the date the license is inactivated, canceled or revoked, whichever is first (§7071.4(f)). Wage and fringe-benefit claims must be brought within six months after the shortfall is discovered, and no civil action later than two years after the payments were due, the same deadline as for bond claims (§7071.4(f)(3); §7071.11(d)).
- The board may not charge legal fees against a deposit and is not liable for legal fees or costs in a civil action against one (§7071.4(h)).
Who can claim on the bond, and how much
The contractor's bond protects these people (§7071.5):
- A homeowner who hired the contractor for home improvement on the homeowner's own family residence and was damaged by a violation of the contractors' law.
- A property owner who hired the contractor to build a single-family home, if the home was not intended or offered for sale when the damage happened.
- Anyone damaged by a willful and deliberate violation of the law, or by the contractor's fraud in carrying out a construction contract.
- An employee who was not paid wages.
- A union trust fund or similar entity owed fringe benefits for the contractor's employees.
A qualifying individual's bond protects the same groups (§7071.10).
Limits on payouts
| Claim | Most the surety pays | Source |
|---|---|---|
| All claims by anyone other than homeowners in group 1 | $7,500 total; the rest is reserved for those homeowners | §7071.6(b) |
| Homeowners in group 1 | Up to the full $25,000 | §7071.6(b) |
| Wages and fringe benefits | $4,000 total (does not apply to the disciplinary bond) | §7071.11(a) |
| Bond too small for all claims | Split among claimants in proportion to their claims | §7071.11(a) |
The qualifier's bond has the same $7,500 cap for claimants other than those homeowners (§7071.9(b)).
Deadlines and what happens after a payout
- Most claims against a bond: sue within two years after the license period in which the act happened expires (for an inactivated, canceled or revoked license, from the date it would have expired) (§7071.11(c)).
- Wage and fringe-benefit claims: within six months after the shortfall is discovered, and no civil action later than two years after the payments were due (§7071.11(d)).
- Before a good-faith payment, the licensee has at least 15 days to send the surety a written protest (§7071.11(f)).
- After any payment, the surety must notify the registrar within 30 days (§7071.11(e)).
- No protest filed? The licensee has 90 days from the board's notice to prove it repaid the surety, or the license is suspended by operation of law (§7071.11(f)(2)).
- Judgment bigger than the bond? The license cannot be renewed, reissued or reinstated while a judgment or admitted claim above the bond amount is unpaid (§7071.11(b)).
Disciplinary and judgment bonds
Disciplinary bond. Anyone tied to a license suspended or revoked for discipline must post one to get, renew or restore a license, or to keep using one whose discipline was stayed. That includes the qualifier at the time of the violation, even one who did not know about it, and other personnel who knew of or took part in it. The registrar sets the amount by the violation's seriousness: $25,000 to 10 times the §7071.6 amount. It is in addition to every other bond and stays on file at least two years, counted only while the license is current, active and in good standing. (§7071.8)
Judgment bond. An applicant with an unpaid final judgment owed to a contractor, subcontractor, consumer, supplier or employee must file a bond equal to the judgment(s) within 90 days of CSLB's notice, or the application becomes void. Licensees must report unpaid final judgments to the registrar in writing within 90 days. (§7071.17)
Don't advertise "bonded"
Advertising that you are "bonded" is cause for discipline if you mean the license bond or a disciplinary bond (§7027.4(b)). Referring to any required bond in ads or other statements to the public is a ground for suspension (§7071.13).
License bonds vs. public works bonds
License bonds are not project bonds. On a public works contract over $25,000, the direct contractor must give the public entity a payment bond before work starts (state-entity contracts under Public Contract Code §7103 excluded) (Civ. Code §9550). It must be at least 100 percent of the contract amount, from an admitted surety, not a deposit (Civ. Code §9554).
Sources
All amounts above come from these official texts. We are not affiliated with CSLB.