What should a California contractor prepare for a business insurance review?

Prepare the business name, license or trade information, employee and payroll details, operations, vehicles or equipment when relevant, contracts, prior coverage, and claims history. A licensed team member can then review the request subject to carrier eligibility, policy terms, and underwriting.

How are business insurance limits or terms selected for a contractor?

Limits and terms are not universal. They can be influenced by the contractor's actual work, contracts, employee duties, vehicle use, project requirements, prior loss history, carrier guidelines, and applicable California requirements. The appropriate structure must be reviewed for the individual operation.

Can Asena provide an exact price or guarantee coverage for this page?

No. Any indication is preliminary until complete information is reviewed. Availability, pricing, limits, effective dates, certificates, and coverage are subject to carrier eligibility, policy terms, underwriting, and written confirmation.

California Contractor Bonding Requirements - Complete Guide

Quick Answer

Every California CSLB contractor needs the $25,000 license bond. LLCs need an additional $100,000 employee/worker bond. Public-works contractors need performance and payment bonds (often 100% of contract value). Bid bonds are required to submit on most public projects. Call (858) 925-9555 — we handle every bond type.

Mandatory Bonds at Licensure

$25,000 Contractor License Bond — every CSLB license (§7071.6)
$100,000 LLC Employee/Worker Bond — LLCs only (§7071.6.5)

Project Bonds (case-by-case)

Performance Bond — is intended to secure completion obligations under the bond terms
Payment Bond — is intended to secure payment obligations to subs and suppliers under the bond terms
Bid Bond — is intended to address the bid obligations stated in the bond terms

Performance and payment bonds together are often called "P&P bonds". Pricing varies by bond amount, applicant, project, surety eligibility, and underwriting.

When P&P Bonds Are Required

Public works projects over $25,000 under California Public Contract Code
Many large private commercial projects per contract terms
Federal projects under the Miller Act

Underwriting

P&P bond underwriting is much stricter than license bonds. Sureties want CPA-prepared financials, work-on-hand reports, and personal indemnity from owners. Strong credit and 3+ years of clean financial history help.

Bidding a public-works project? Call (858) 925-9555 — we'll line up the P&P bond before bid day.

Call (858) 925-9555 — every bond a California contractor needs.