If your contractor's license has been suspended or revoked due to a violation of Contractor's License Law, the California Contractors State License Board (CSLB) may require you to file a contractor disciplinary bond in California to reinstate, continue, renew, or restore your license. At CCIS, we specialize in making the process simple, so you can get back to work with confidence.
Overview of California Disciplinary Bonds
A California disciplinary bond is a type of surety bond mandated by the CSLB for contractors, Qualifying Individuals, or business owners whose license has been subject to disciplinary action. This bond provides additional protection for the public by guaranteeing that you'll follow California Contractor License Law while your license is active again.
Those who need a contractor disciplinary bond include:
- Contractors whose license was suspended or revoked due to a violation
- Qualifying Individuals or primary owners/managers with disciplinary action history
- Anyone seeking to reinstate, renew, or continue a license after CSLB action
Pricing and Cost Factors for Contractor Disciplinary Bonds
The cost for a CSLB disciplinary bond depends on several factors, including the bond amount set by the CSLB, your credit, license history, business financials, and the nature of the violation.
Contractor Disciplinary Bond Cost*
Bond Amount | Bond Cost* |
---|---|
$25,000 | $1,250 |
$30,000 | $1,500 |
$45,000 | $2,250 |
$60,000 | $6,000 |
*Prices shown are the minimum pricing for a one year term and are based on several factors including personal credit of the owner(s), license history, license classification, personal financials of the owner(s) and prior business financials. Not all available pricing tiers are shown. Rates do not constitute an offer of bonding and are subject to change at any time. Contractor Disciplinary Bond rates are dependent and will vary based on the penalty sum amount and the factors previously listed.
Purpose of the Contractor Disciplinary Bond in California
A contractor disciplinary bond in California is required to protect the public from contractors who have previously violated license law. The CSLB sets the bond amount based on the seriousness of the violation and the perceived risk to consumers. Filing this bond is necessary for reinstating or applying for a new contractor license after disciplinary action.
How the CSLB Disciplinary Bond Works
Understanding the requirements and mechanics of a CSLB disciplinary bond can help ensure you remain compliant and keep your business moving forward. Here's what you need to know:
- Bond Amount: Minimum of $15,000, up to $150,000 (10x minimum), based on CSLB assessment
- Duration: Must remain on file for at least two years, or longer if required by the CSLB
- Additional Bonding Requirements: You must file this bond in addition to your standard contractor license bond and any other required bonds.
- Who's Protected: The bond protects your clients, vendors, suppliers, and employees by providing financial restitution if you violate the law again.
- Issuing Carrier: The bond must be issued by an insurance carrier admitted by the California Department of Insurance.
If a claim is paid by the surety, you (the contractor/principal) are required to reimburse the surety company. Failure to do so can result in indefinite suspension of your license.
Additional Surety Bonds Required for California Contractors
Along with the disciplinary bond, California contractors may need to secure other surety bonds to stay fully licensed and compliant. Common requirements include:
- Contractor License Bond: $25,000 required for all active contractors
- Bond of Qualifying Individual: $25,000 may be required depending on license structure
- LLC Employee/Worker Bond: $100,000 for LLCs
- Contract Surety Bonds: Bid, performance, and payment bonds may be required on a project-by-project basis
Frequently Asked Questions: California Contractor Disciplinary Bond
How is the California disciplinary bond amount determined?
How long must I maintain a CSLB disciplinary bond?
What's the difference between a contractor disciplinary bond and a contractor license bond?
How do I get a CSLB disciplinary bond?
Get Your California Contractor Disciplinary Bond Today
Don't let a past violation hold your business back. Get your CSLB disciplinary bond fast and hassle-free with CCIS—California's trusted source for contractor bonds and insurance.
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