United States · Licensing examContractor license bonds in five states
| Where | Bond | Amount |
|---|---|---|
| California | Contractor bond, or a cashier's check | $25,000 |
| California | Bond of qualifying individual, for RME-qualified licenses | $25,000 |
| California | LLC employee or worker bond, on top | $100,000 |
| North Carolina | Instead of working capital: limited, intermediate, unlimited | $175,000, $500,000, $1,000,000 |
| Illinois | Roofing: limited or unlimited | $10,000 or $25,000 |
| Minnesota | Residential roofer | $15,000 |
| New York City | Home improvement, or a $200 trust fund instead | $20,000 |
West Virginia asks every applicant for a wage bond status affidavit, and contractors doing commercial work with employees check their wage bond status with the Division of Labor.
What does a contractor license bond cover in California?
CSLB says the bond protects consumers. Homeowners, victims of fraud or deliberate license law violations, and employees owed wages or fringe benefits can claim against it. The amount isn't per job: it's the total available for all of a contractor's jobs while the bond is in force. The contractor bond, the bond of qualifying individual and the disciplinary bond all rose to $25,000 on January 1, 2023, under Senate Bill 607.
- Look up the contractor on CSLB's site to find the surety company.
- Gather your contract, payment records, messages and proof of the problem.
- Contact the surety and send your evidence. It investigates and decides whether to pay.
If you disagree with the surety's answer, small claims court takes amounts up to $10,000 and superior court anything above. If the contractor filed a cashier's check instead, you sue the licensee and the CSLB Registrar, because CSLB pays from the check only on a court order. You can still claim after a license is revoked, for up to two years from its original expiration date.
How North Carolina's bond option works
North Carolina's general contractor board wants working capital for each license level. If you can't show it, you can file a surety bond instead. The surety must be authorized in North Carolina and rated A++ to A- by A.M. Best, the bond must stay in force for as long as you hold the license, and you send proof with each annual renewal. It's for the benefit of anyone harmed by your acts, such as a breach of a construction contract.
A bond isn't insurance
Boards ask for insurance separately. A California LLC, for example, also needs liability insurance of at least $1 million when it has five or fewer personnel, plus $100,000 for each extra person, up to $5 million.
Sources: CSLB · NCLBGC · IDFPR and 6 more. Checked October 2026.
- CSLB: Bond requirements ↗
- CSLB: Fast Facts, a guide to contractor license bonds (rev. 8/2025) ↗
- CSLB: Contractor license bonds guide (rev. 12/22) ↗
- CSLB: Licenses for LLCs ↗
- NCLBGC: 2026 Laws and Regulations ↗
- IDFPR: Application for Licensed Roofing Contractor ↗
- Minnesota DLI: Roofer license ↗
- NYC DCWP: Home improvement contractor license checklist ↗
- WV Contractor Licensing Board: Step-by-step guide ↗
Rules and fees can change, so check the official site before your test.
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