Contractors Bond
The amount currently set by the Contractors State License Board for this bond is $15,000. This is required to keep your license active for the protection of the consumers. Who can file a claim on this bond? A lot of contractors mistake this insurance as protection for themselves but only homeowners/clients, subcontractors or suppliers can file a claim and use the $15,000 bond amount. This bond is a promise from the contractor to perform the work according to contract and complete the project. If not, a claim can be filed, the insurance company will then cancel your bond and inform the Board, and your license will be suspended until you pay the bond company back and reinstate your bond.