Surety bonds
Surety bonds guarantee your work or your license obligations to a client or the state.
What it covers
Covered
Every policy is different. Oscar walks you through the exact wording of yours.
- 01Contractor license bonds
- 02Bid, performance and payment bonds
- 03Permit bonds
- 04Fidelity bonds for employee theft
What it doesn’t cover
Usually not covered
- Your own losses (a bond protects the other party, not you)
- Injuries or damage (that’s general liability)
- Anything you don’t repay the surety for, if a claim is paid
Who needs it
Who it’s for
Licensed contractors, businesses bidding on public or large private jobs, and businesses that need a permit bond.
Bundle two or more policies with Diamond and save up to 20%. A licensed agent reviews every request. Nothing on this page is a quote or proof of coverage.
Source: CSLB bond requirements
FAQ
Bonds questions
How much is the California contractor license bond?
The CSLB requires a $25,000 contractor license bond, in effect since January 1, 2023.
Is a bond the same as insurance?
No. A bond protects your client or the state. If the surety pays a claim, you’re expected to pay it back.
Related coverage
CoverageBuilder’s riskProtects a building while it’s being built or renovated, plus the materials on site, until the job is done.CoverageGeneral liabilityCovers injuries to other people and damage to their property caused by your business, plus the legal costs if you’re sued.CoverageTools and equipmentInland marine coverage for tools, gear and equipment that move between your shop, your truck and the job site.
Next step
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