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.

Surety Bonds for California Contractors - Complete Guide

Quick Answer

California contractors use four types of surety bonds: the $25,000 CSLB license bond, the $100,000 LLC employee/worker bond (LLCs only), performance bonds (project completion obligations under the bond terms), and payment bonds (payment obligations to subs and suppliers under the bond terms). Bonds are NOT insurance — they're surety obligations that may create reimbursement duties under the bond agreement. Call (858) 925-9555 to bond timely.

Bond Type Cheat Sheet

Bond	When required	Annual cost depends on the business and underwriting factors
$25K Contractor License Bond	Every CSLB license	pricing varies by classification, payroll, operations, claims history, limits, and underwriting
$100K LLC Employee/Worker Bond	LLC contractor entities only	pricing varies by classification, payroll, operations, claims history, limits, and underwriting
Performance Bond	Most public works projects	1–3% of contract value
Payment Bond	Often paired with performance bond	1–2% of contract value
Bid Bond	Submitting a public-works bid	pricing varies by classification, payroll, operations, claims history, limits, and underwriting per bid

How Bond Underwriting Works

Sureties evaluate three factors: Character (personal credit, experience), Capacity (financial strength of the business), Capital (cash and working capital). Public-works performance bonds require CPA-prepared financials and personal indemnity from owners.

Bond vs Insurance

Insurance spreads risk among many policyholders. Premium is the price of transferring risk.
Surety bond is a credit instrument. Premium is the cost of the surety's coverage expectation — you reimburse the surety in full for any paid claim.

Need any bond? Call (858) 925-9555.