California Contractors Bond
Frequently Asked Questions (FAQ)
How can I get a California contractors bond from Schaedler Insurance?
Our agency has greatly simplified the bonding process by providing two simple ways to buy a contractor’s license bond:
Option A- Instant Quote & Issue
1. Enter your license or application number at the top of this page and click “Get Quote” 2. Answer a few questions about your business 3. Review your online quote and purchase instantly using a credit card 4. Your bond will be electronically filed with the CSLB and you will be emailed a copy of the bond for your records.
Option B- Print & Mail/Fax Bond Application
1. Download and complete the appropriate bond application from below: 2. Complete the payment portion of the application. If paying by check, please make checks payable to “Schaedler Insurance”. If paying by credit, complete the payment authorization form. 3. Mail or fax the completed application and payment to: Schaedler Insurance 5075 Hillsdale Circle #250
El Dorado Hills, CA 95762 Fax: 1-800-599-1508 4. Once approved, your bond will be electronically filed with the CSLB and we will send you a bond card for your records.
What is a contractor’s surety bond?
In regards to contractors, a surety bond is essentially a promise made by a bond company to pay a claim made against a contractor for violating the terms of the Contractors State License Law (CSLL) up to the limits of the bond ($12,500). In contrast to insurance, a contractor is still liable for the amount paid by the bond company, and must repay the surety for the amount of the claim paid out.
What is the bond application process for California roofers (C-39) and pool contractors (C-53)?
If you hold a C-39 or a C-53 license, please complete the paper application. The instant quote and issue application is currently only available for general construction.
Can I still get a California contractors bond if I have bad credit?
Yes, Schaedler Insurance has many affordable bond options available for individuals with substandard credit profiles. Just complete the bond application and a Schaedler Insurance bond specialist will review the best options available depending on your circumstances.
Are payment plans offered for contractors bonds?
Yes, financing is available on many but not not all contractor’s bonds.
If my credit is bad and I have a co-signor, can I get a better contractor’s bond rate?
For individuals with poor credit, a co-signor can significantly reduce your annual bond premium. Not all contractors will qualify for a co-signer option and there are many factors to consider when going this route. Please contact Schaedler Insurance at 916-370-7732 if you are interested in obtaining a co-signor for your bond and we can review your particular situation.
Will you file my California contractor’s bond with the CSLB?
Yes, all bonds are electronically filed instantly with the CSLB. Just purchase your bond and we’ll take care of the rest.
What is the difference between a “contractor’s license bond” and a “bond of qualifying individual?”
A “contractor’s license bond” is for the business that is licensed to operate in the state of California. The “bond of qualifying individual” (BQI) is required for the qualifying individual who is a responsible managing employee (RME) or is a responsible managing officer (RMO) who owns 10% or less of the voting stock of the licensed business. A BQI is required when there are multiple RME/O’s for the licensed corporation. Each of these bonds is in the amount of $12,500. For “bonds of qualifying individuals”, please complete the paper application.
How can a contractor avoid claims on their contractor’s license bond?
The cost and availability of your contractors bond will be significantly impacted by claims. While there are many factors that go into the likelihood of having a bond claim, a good starting point is to make sure all contracts are in writing and the terms are clear to all parties involved. In addition, make sure to carefully store all contract documents in a safe, secure place.
How long does the CSLB take to update my bond information?
While bonds are submitted electronically with the CSLB, it usually takes a few days for your records to be updated on the state’s website. The CSLB does post bond processing times on their website.
What are the rates for a $12,500 California contractor’s bond?
The bond rates for California contractor’s can start as low around 1% of the bond amount with good credit and license history to well over 10% for those with challenged credit or other license issues. Some contractors facing significant challenges such as a prior bond claim or an open bankruptcy may have a more difficult time getting bonded.
What are the bonding requirements for California contractor’s?
All licensed contractors in the state of California are required to maintain a bond in the amount of $12,500 with the California Contractors License Board (CSLB) according to section 7071.6 of the Business and Professions code. Failure to maintain an active bond (or cash collateral) with the CSLB can result in a suspended contractor’s license or other ramifications. Also, it’s very important that the business name and license number on the bond correspond exactly with the business information on file with the contractor’s state license board.