CSLB Reminds Licensees of Contractor’s Bond Increase to $25,000
The Contractors State License Board (CSLB) is reminding all licensees that the contractor’s bond amount is increasing to $25,000 on January 1, 2023.
CSLB first announced this increase in December 2021 which resulted from Senate Bill 607, signed into law in 2021. The increase applies to the contractor license bond (from $15,000 to $25,000) and the bond of qualifying individual (from $12,500 to $25,000).
CSLB distributed notices to 203 surety carriers on September 28, 2022, with instructions for automatically increasing all licenses’ bonds and bonds of qualifying individuals currently on file with CSLB. If you are a licensed contractor, your carrier should contact you soon to inform you of any changes to your bond premium.
Revised contractor bond and bond of qualifying individual forms with the new bond amounts will be available to the carriers in December 2022.
This increase occurred in part due to a license bond study CSLB conducted as required by Business and Professions Code section 7071.6. The study determined that the current $15,000 amount of the contractor bond is not sufficient, and an increase may be necessary.
More information about bonds can be found on CSLB’s website.
If you have any questions about these changes or an increase to your bond premium, please contact our office at 1.800.236.9046.
Whether you’re looking to protect your family, home or business, we have the experience you’re looking for.