California Contractor Bond Increase Effective January 1, 2023

California Contractor Bond Increase

Effective January 1, 2023, bond amounts for both the California contractor license bond and the California qualifying individual bond will increase to $25,000. Governor Gavin Newsom approved Senate Bill 607 on September 21, 2021. As of December 1, 2022, 236,919 contractors hold active licenses in the state, all of whom will need surety bond increases processed to keep their contractor licenses in good standing with the state. 

How do I increase my California contractor bond?

How your California contractor bond increase will be processed depends on the insurance carrier that issued your bond. Some insurance carriers are accounting for the premium increase by shortening the original bond term to avoid generating invoices for additional premium. If this is how your carrier handles your increase, your existing contractor bond will come up for renewal earlier than you originally anticipated. 

Other insurance carriers are processing the increase by charging additional premium to keep the original bond term unchanged. If this is how your carrier handles your increase,  you should pay your additional premium invoice as soon as possible so your bond term remains unchanged. If you do not pay your increase invoice in time, your original bond term will be shortened (or possibly canceled) to account for the unpaid premium.

If you have questions about your bond’s increase or possible additional premium required at this time, contact your surety provider. If you purchased your California contractor bond from, you can email [email protected] or call 1(800)308-4358 to speak with a friendly surety expert about your bond increase. 

How will this bond increase affect my renewal?

As explained above, your bond’s current term could be shortened to account for the bond amount and premium increases. Whether your bond term changes or stays the same as part of this increase, your surety provider will contact you before your current bond term ends to ensure your bond remains active for its next renewal term.

Who regulates contractors in California?

The California Contractors State License Board (CSLB) enforces license and bond requirements for contractors working in the state. The CSLB published an industry bulletin about this change on September 30, 2022. If you have questions about your current surety bond or professional license status, you can call the CSLB’s 24-Hour Licensing and Consumer Information line at 1(800)321-2752.

Why did the CSLB increase the contractor bond amount?

The CSLB conducted a study according to Business and Professions Code section 7071.6 that concluded the current bond amounts no longer offered sufficient consumer protection.

How can I get a new California contractor bond?

If you’re unsure who your current surety provider or insurance carrier is, or if they canceled your existing bond as a result of this increase, you can apply for a new California contractor bond online 24/7 or call 1(800)308-4358 to speak with a surety expert about your bonding needs. California contractor license bonds and qualifying individual bonds issued with an effective date of January 1, 2023, or later must be filed with the new $25,000 bond amount.

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About the Author

Danielle Burrow
Danielle Burrow is the Chief Operations Officer at She graduated from the University of Missouri School of Journalism in 2011.