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Contractor bond and insurance requirements in California

Short answer

Every active California contractor license carries a $25,000 contractor's bond, the required amount since Jan 1, 2023. Workers' comp is required for any contractor with employees and for five classes even without employees. Everyone else with no employees can file an exemption until Jan 1, 2028, when a workers' comp certificate becomes a condition of almost every license. Both show on the contractor's CSLB record.

Rules checked Oct 18, 2026 against 6 CSLB and California code pages, listed below.

The $25,000 contractor's bond

These amounts took effect Jan 1, 2023 (SB 607). Before that, the contractor bond was $15,000 and the qualifier bond $12,500. CSLB sets the bond amount, not the price a contractor pays a surety for it, and we have no sourced figure for that price.

  • Contractor's bond: $25,000, required to get and keep an active license.
  • Bond of qualifying individual: also $25,000, posted for the person who qualifies the license. It is not required when that person owns 10% or more of the company, and the CSLB record says so.
  • Disciplinary bond: at least $25,000 and up to 10 times the contractor bond, required by CSLB in some disciplinary cases.

Sources: CSLB, Bond requirements, checked Oct 18, 2026; CSLB, license detail record (sample #1046239, opened after a search), checked Oct 18, 2026

Check a Bay Area license

Name or license number. Each result links to the live CSLB record.

Searches active and lapsed Bay Area B and B-2 licenses. Other classes: search on CSLB.

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Workers' comp: who must carry it today

Every other contractor with no employees may file an exemption with CSLB.

  • Any contractor with employees.
  • C-8 (concrete), C-20 (HVAC), C-22 (asbestos abatement), C-39 (roofing) and C-61/D-49 (tree service), whether or not they have employees.
  • Any license qualified by an RME (a responsible managing employee). It cannot claim the exemption.

Source: CSLB, Workers' compensation requirements, checked Oct 18, 2026

What changes on January 1, 2028

From Jan 1, 2028, the new B&P Code 7125 makes a workers' comp certificate a condition of every active license. The only exemption left is a joint venture with no employees, and inactive licenses aren't covered. The date was first set for 2026 and moved to 2028 by SB 1455 (2024). Until then, a B contractor with no employees can legally file an exemption.

Sources: California B&P Code 7125 (version operative Jan 1, 2028), checked Oct 18, 2026; CSLB, Workers' compensation requirements, checked Oct 18, 2026

What "exempt" means on a card

It means the contractor told CSLB it has no employees. It's common: in the CSLB file dated Oct 16, 2026, 10,287 of 17,869 active Bay Area B and B-2 licenses on our lists show an exemption, and 7,346 show a policy.

Ask who will work on your site. If the crew are the contractor's employees, the contractor needs a policy. If they are subcontractors, ask for each sub's license number and check it too.

Sources: CSLB, Workers' compensation requirements, checked Oct 18, 2026; CSLB Data Portal, Master List of Contractors, checked Oct 18, 2026

What the CSLB record doesn't show

The license record shows the bond and workers' comp. On the corporation record we reviewed it showed no general liability policy. If you want proof of liability insurance, ask for the certificate and call the insurer named on it.

Money is the other safety net. On a home improvement contract, the down payment can't exceed $1,000 or 10% of the price, whichever is less, and no progress payment can exceed the value of the work done or materials delivered.

Sources: CSLB, license detail record (sample #1046239, opened after a search), checked Oct 18, 2026; California B&P Code 7159.5, checked Oct 18, 2026

Questions

How much is a contractor's bond in California?

$25,000 for the contractor's bond, and $25,000 for the bond of qualifying individual when one is required. Both amounts have applied since Jan 1, 2023 (CSLB).

What insurance does a California contractor need?

Workers' comp if the contractor has employees, and always for C-8, C-20, C-22, C-39 and C-61/D-49. From Jan 1, 2028, a workers' comp certificate is required for almost every active license (B&P Code 7125).

What does a workers' comp exemption mean?

The contractor told CSLB it has no employees. It is legal for most classes until Jan 1, 2028. Ask who will be on your site.

Where do I see a contractor's bond and workers' comp?

On the license record at CSLB's Check a License page. Our cards show the same fields, with the date of the CSLB file they came from.

Next steps on this site

Sources

  1. CSLB, Bond requirements, checked Oct 18, 2026
  2. CSLB, license detail record (sample #1046239, opened after a search), checked Oct 18, 2026
  3. CSLB, Workers' compensation requirements, checked Oct 18, 2026
  4. California B&P Code 7125 (version operative Jan 1, 2028), checked Oct 18, 2026
  5. CSLB Data Portal, Master List of Contractors, checked Oct 18, 2026
  6. California B&P Code 7159.5, checked Oct 18, 2026

This guide explains public rules in plain words. It isn't legal advice. CSLB and the code sections above are the authority, and rules change.