Bonds Insurance

Industry

A surety bond is a three-party agreement in which a surety company guarantees to an obligee (the party requiring the bond) that a principal (you or your business) will fulfill a specific obligation — contractual, regulatory, or legal. Unlike insurance, a bond makes the surety a co-guarantor: if you …

Key Coverages for Bonds Businesses

Contractor license bonds — California CSLB requires $25,000 for all licensees
Bid bonds — guarantee a contractor will honor their bid if selected
Performance bonds — guarantee completion of a construction contract
Payment bonds — guarantee subcontractors and suppliers will be paid
License and permit bonds for state-regulated industries
Fidelity bonds / employee dishonesty bonds

Frequently Asked Questions

What is the California Contractor's License Bond and how much does it cost?

California requires all CSLB-licensed contractors to maintain a $25,000 contractor's license bond. The annual premium is typically $100–$250 for contractors with good credit. Poor credit may require higher premium or a collateralized bond.

What is the difference between a surety bond and insurance?

Insurance transfers risk from you to the insurer — you pay premiums and file claims. A surety bond is a three-party guarantee: the surety guarantees a third party that you'll fulfill an obligation, and if the surety pays a claim, they seek reimbursem…