What is the $25,000 California contractor bond?
The contractor bond is a $25,000 surety bond that nearly every active CSLB licensee must keep on file, required by Business & Professions Code §7071.6. It's a limited fund a homeowner, employee, or the state can claim against if the contractor violates the contracting license law — not a substitute for insurance.
Verified against CSLB on · reflects current CSLB rules and California law.
Summary — key takeaways
- The contractor bond is $25,000, required by B&P Code §7071.6.
- Raised from $15,000 effective January 1, 2023.
- It's a limited fund for licensing-law violations — not a substitute for insurance.
- A homeowner can claim against it, up to $25,000, for specific violations.
- A lapsed bond suspends the license until it's restored.
What the $25,000 bond covers
Required by Business & Professions Code §7071.6, the bond protects against specific harms defined in the licensing law — for example, willful or fraudulent acts that damage a consumer, or failure to pay certain workers. The amount is currently $25,000, raised from $15,000 effective January 1, 2023. It is filed with CSLB and reflected on the license record.
A bond is a guarantee, not insurance
A bond is not insurance and not a deposit the contractor can spend. It's a guarantee: if a valid claim is paid out, the contractor must repay the surety and keep the bond in force, or the license is suspended. That's why a lapsed bond is a common reason an otherwise active license shows as suspended.
Other bonds some licenses carry
Some licenses carry additional bonds — a bond of qualifying individual, or a disciplinary bond — but the standard $25,000 contractor bond is the one almost every licensee maintains. Each profile here shows whether a bond is on file.
Frequently asked questions
How much is the California contractor bond?
$25,000, set by Business & Professions Code §7071.6. It was raised from $15,000 effective January 1, 2023.
Does the contractor bond protect homeowners?
In limited ways. A homeowner can file a claim against the bond for specific violations of the contracting license law, up to $25,000. For broader protection against property damage or injury, you rely on the contractor's liability and workers' compensation insurance, not the bond.
What happens if a contractor's bond lapses?
Their license is suspended until the bond is restored. A contractor cannot legally work on a suspended license, so a missing bond is worth checking before you hire.
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