California Contractor License Bond Guide: $25,000 CSLB Requirement, Cost & How to Get One

The California contractor license bond is the foundational bond every CSLB-licensed contractor needs. Under SB 607, the required amount rose to $25,000, filed on CSLB form 13b-1. This guide explains what the bond covers, estimated cost, the related bonds some contractors also need, and how to get bonded.

For how contractor bonds work in general, see our contractor license bond explained.

California’s $25,000 CSLB Bond Requirement

Under California law, a CSLB-licensed contractor must:

• File a $25,000 contractor license bond with the CSLB (form 13b-1)
• Keep the bond on file continuously for the license to remain active
• File additional bonds in certain situations (see below) (if required)

The $25,000 amount reflects the increase under SB 607. The bond protects consumers harmed by license-law violations, employees owed wages, and the state.

What the Bond Covers

• Violations of the California contractor licensing law
• Failure to complete contracted work or willful departure from plans
• Unpaid wages owed to employees
• Financial harm to consumers from license-law violations

A harmed party files a claim against the bond. The surety reviews claims, pays valid claims up to the $25,000 limit, and collects reimbursement from the contractor under the indemnity agreement.

Estimated Cost of the California Contractor License Bond

You pay a premium that is a percentage of the $25,000 bond amount, based on a soft credit pull. General first-year premiums commonly fall between roughly $250 and $750 for good-credit applicants.

The $25,000 amount maps to the $25,000 surety bond page. California products: California contractors bond $25,000, bond of qualifying individual, contractor disciplinary bond. For full pricing, see the surety bond cost guide.

Getting the Bond with Credit Challenges

Applicants with weaker credit can still be considered, generally at a higher premium. Collateral options are available to reduce rates where needed. Note this is the license bond, which is more accessible than project performance and payment bonds. See bad credit surety bonds.

License Bond vs. Project Bonds

The $25,000 CSLB bond lets you hold your license. Individual projects may require separate bid, performance, and payment bonds. For those, see construction bonds explained and bid vs. performance bond.

How to Get a California Contractor License Bond

1. Confirm the $25,000 requirement and whether a qualifying-individual bond also applies (if required).
2. Apply. Provide business and personal information and authorize a soft credit pull.
3. Get your quote and pay. Turnaround may take from same day to a couple of business days.
4. File with the CSLB. The bond (form 13b-1) is filed electronically by the surety company on your behalf with the Contractors State License Board.

See more California bonds at the California state bonds hub.

Frequently asked questions

• What is a California contractor license bond?
  It’s a $25,000 surety bond every CSLB-licensed contractor in California must file with the Contractors State License Board on form 13b-1. It protects consumers, employees, and the state from violations of the contractor licensing law. The bond must stay on file for the license to remain active.
• How much does a California contractor license bond cost?
  You pay a premium that is a percentage of the $25,000 bond amount — commonly roughly $250 to $750 for the first year for good-credit applicants. These are estimated 1-year premiums; multi-year terms are available at a discount. Request a quote for an exact figure.
• Why is the California contractor bond $25,000?
  The required amount was increased to $25,000 under SB 607. It applies to all CSLB-licensed contractors and is filed on CSLB bond form 13b-1. Confirm current requirements with the CSLB.
• What does the California contractor license bond cover?
  It covers violations of the contractor licensing law, failure to complete work or willful departure from plans, unpaid employee wages, and consumer harm from license-law violations. Harmed parties file claims against the bond.
• What other CSLB bonds might I need?
  Beyond the $25,000 license bond, some contractors need a bond of qualifying individual (when an RMO or RME qualifies the license) or a disciplinary bond (if the CSLB imposes one after disciplinary action). Confirm which apply to your situation.
• Can I get a California contractor license bond with bad credit?
  Applicants with weaker credit can still be considered, generally at a higher premium. Collateral options are available to reduce rates where needed. The license bond is more accessible than project performance bonds. A soft credit pull is typically used.
• What’s the difference between the license bond and a performance bond?
  The $25,000 CSLB license bond lets you hold your contractor license and stays on file continuously. A performance bond guarantees a specific project and is purchased per job as a percentage of the contract. Contractors often need both.
• How long does the California contractor license bond last?
  It is commonly issued for a two-year term to align with the CSLB license cycle and must stay on file continuously. Multi-year terms may be available at a discount.

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