Contractor Bonds for California Contractors | EIS California
Building Trust, Compliance, and Confidence
In California’s construction industry, your reputation and compliance are everything. Whether you’re applying for a new contractor’s license, renewing your existing one, or bidding on a public works project, the right Contractor Bonds help you stay licensed, protect your clients, and secure more opportunities.
At Eastman Insurance Solutions (EIS California), we help contractors across the state meet CSLB bonding requirements and obtain Performance and Payment Bonds that strengthen credibility and protect against costly disputes.
What Are Contractor Bonds?
A Contractor Bond is a financial guarantee that protects your clients and the public if your company fails to meet contractual or legal obligations. It’s a three-party agreement involving:
- You (the contractor)
- Your client or the state (the obligee)
- The surety company (the bond provider)
If a contractor violates licensing laws, fails to complete work, or doesn’t pay suppliers, the surety compensates the injured party — ensuring accountability and trust in the construction industry.
CSLB License Bond Requirements in California
The California Contractors State License Board (CSLB) requires all licensed contractors to carry an active Contractor License Bond as a condition of licensure and renewal. However, the required bond amount depends on your business entity type.
1. License Bonds for Sole Proprietors, Partnerships, and Corporations
All licensed contractors operating as individuals, partnerships, or corporations must maintain a $25,000 Contractor License Bond on file with the CSLB.
This bond:
- Protects consumers from financial harm caused by contractor violations
- Ensures compliance with California Business & Professions Code §7071.6
- Must remain active at all times to prevent license suspension
2. License Bonds for LLC Contractors
Contractors operating as Limited Liability Companies (LLCs) are subject to higher bonding requirements due to the entity’s limited personal liability protections.
LLC contractors must carry:
- A $100,000 LLC Employee/Worker Bond, required under California Business & Professions Code §7071.6.5
- The standard $25,000 Contractor License Bond (same as all other license types)
This means LLC contractors must maintain both bonds concurrently — totaling $125,000 in required bonding.
The additional $100,000 bond specifically protects employees and workers of the LLC against nonpayment of wages, benefits, or other compensation.
EIS California helps LLC contractors manage these dual bond requirements efficiently, ensuring full compliance with CSLB standards and project readiness.
Other Essential Contractor Bonds
Beyond CSLB licensing, contractors often need additional surety bonds to qualify for public and private projects. EIS California provides all major contractor bond types, including:
Performance Bonds
Guarantee that a project will be completed according to the contract’s terms and specifications.
- Common for public works and large private projects
- Protects project owners from financial loss if a contractor defaults
- Strengthens bid credibility and financial standing
Payment Bonds
Ensure subcontractors, suppliers, and laborers are paid for their work on bonded projects.
- Required on many public projects over $25,000
- Prevents liens and payment disputes
- Enhances relationships with vendors and partners
Bid Bonds
Guarantee that the contractor will enter into a contract if awarded the bid and will furnish required Performance and Payment Bonds.
- Required in most competitive bidding processes
- Demonstrates financial capability and reliability
Why California Contractors Choose EIS California
EIS California simplifies the bonding process by integrating it directly with your insurance program. Whether you’re securing a CSLB bond or qualifying for multi-million-dollar project bonds, our team delivers fast, compliant, and cost-effective solutions.
We provide:
- Same-day issuance for CSLB License Bonds
- High bonding capacity for mid-to-large contractors
- Flexible terms and renewals to align with license cycles
- Comprehensive insurance integration (GL, Workers Comp, Auto)
As a trusted independent agency, EIS California partners with A-rated surety companies to ensure reliability, competitive pricing, and expert guidance for every bond requirement.
Who Needs Contractor Bonds in California
Contractor Bonds are required or recommended for:
- All CSLB-licensed contractors (including LLCs, corporations, partnerships, and sole proprietors)
- Public works contractors bidding on municipal or state projects
- Private commercial and multi-family builders with bonded project requirements
- Subcontractors under general contractors with bonded contracts
Our team assists both new license applicants and established firms expanding operations across California or into multi-state markets.
Bond Premium Expectations
Bond premiums vary based on the bond amount, contractor credit, and business financials.
Typical Costs:
- CSLB $25,000 License Bonds: $100–$250 per year for qualified contractors
- CSLB LLC $100,000 Employee/Worker Bonds: $500–$2,000 per year, depending on credit and claims history
- Performance/Payment Bonds: 2%–8% of the total contract value
EIS California helps contractors secure preferred rates by leveraging our surety relationships and optimizing your financial presentation to bond underwriters.
Frequently Asked Questions
1. Are all contractors required to have a CSLB bond?
Yes. Every licensed contractor in California must maintain a $25,000 CSLB License Bond, and LLCs must also carry an additional $100,000 Employee/Worker Bond.
2. Why is the LLC bond amount higher?
The $100,000 bond protects employees of LLCs because personal liability protections limit recourse against owners.
3. What happens if my CSLB bond expires or lapses?
Your license will be automatically suspended until the bond is reinstated. EIS California ensures renewals are handled on time to prevent costly interruptions.
4. Can I bundle bonds with my insurance policies?
Yes. EIS California can coordinate your License and Performance Bonds with General Liability, Workers Compensation, and Commercial Auto coverage for streamlined management.
5. How fast can I get a License Bond?
Most CSLB bonds are issued the same day, and Performance or Payment Bonds are typically approved within 24–48 hours once documentation is complete.
Stay Compliant and Competitive with EIS California
Whether you’re maintaining your CSLB license or securing a multimillion-dollar contract, EIS California provides the bonding expertise you can count on. From License Bonds to Performance and Payment Bonds, we ensure your business remains compliant, credible, and ready for growth.
📞 Call EIS California today or visit EISCalifornia.com to request your bond quote.