Surety Bonds & License Bonds · California
Surety Bonds for California Contractors & Businesses
Surety bonds guarantee that a business will fulfill its contractual or legal obligations. They are required for most licensed contractors in California and for many public and private projects. Unlike insurance, bonds protect the project owner or obligee — not the contractor.
What It Covers
Contractor default or project abandonment
Failure to pay subcontractors and material suppliers
State licensing requirements for contractors and service businesses
Public project bid and performance requirements
Employee dishonesty and fidelity risk
Court-ordered fiduciary and estate bonds
Coverage Components
Core Components
License & Permit Bonds
Required by the CSLB and other agencies for licensed contractors and service businesses.
Optional / Add-On Components
Performance Bonds
Guarantees a contractor will complete a project according to the contract terms.
Payment Bonds
Guarantees a contractor will pay subcontractors, suppliers, and laborers.
Bid Bonds
Guarantees a contractor will honor their bid price and execute the contract if selected.
Fidelity / Dishonesty Bonds
Covers losses from employee theft or fraudulent acts.
Court & Fiduciary Bonds
Court-required bonds for administrators, trustees, and fiduciaries.
Frequently Asked Questions
