California Surety Bond Requirement Increase
The Contractors State License Board (CSLB) wants all licensees to know that the contractor’s bond amount will be increasing to $25,000 on January 1, 2023. CSLB first announced this increase in December 2021. The increase is because of Senate Bill 607, which was signed into law in 2021.
The increase applies to the contractor license bond (from $15,000 to $25,000) and the bond of the qualifying individual (from $12,500 to $25,000). CSLB sent notices to 203 surety companies on September 28, 2022. These notices had instructions for automatically increasing all licenses’ bonds and bonds of qualifying individuals that are currently on file with CSLB. If you are a licensed contractor, your surety company or broker should contact you soon about this change.
