At Gillespie Insurance Services, we believe that simple things should be simple. While bonds themselves are not always simple, buying one should be. Our mission is to help you get the bond you need without friction.
We specialize in helping contractors get insured and bonded and have been doing so for the last 20 years.
If you’re an LLC, already familiar with the LLC Employee / Worker bond, know what you need, and are ready to buy, just click below to get bonded in about five minutes.
For those that would like to know more – those of you who are working on your contractors license or thinking about getting one for the first time – we’re here to help! Please see our Frequently Asked Questions below to learn more.
An LLC Employee / Worker bond is a specific type of bond that ensures that employees of the company (the contractor that gets the bond) receive their wages and benefits. The company – which is a contractor that is organized as an LLC – must get the bond as a guarantee that employees of the LLC will get paid what they’re owed.
| Other Potential Bonding Requirements! |
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| There are a few other common types of bonds that contractors frequently need. |
No, this bond is NOT insurance. It is a financial guarantee that states that you, the business owner that is an LLC, will pay your employees.
Insurance such as General Liability pays for bodily injury or property damage that you’ve caused to others and are held liable for. General Liability pays for mistakes. This bonds pays your employees if you fail to meet your obligations.
Perhaps the biggest difference between the LLC Employee / Worker Bond and insurance is that if your bond company (called the surety) pays on your behalf, you will have to pay it back to the surety.
Here’s short version showing how a claim scenario could occur:
| Other Insurance Requirements! |
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| General Liability
As a licensed contractor you will want – and probably contractually need – General Liability insurance. Click HERE to get a quote! Workers Comp And if you have employees, you’ll need workers comp as well. Even if you don’t have employees, but have the following licenses, you’ll need to get a workers comp policy in place:
Click HERE to get a Workers Comp quote |
Any contractor in California that is organized as an LLC. If you are an LLC, this bond, plus the contractors license bond, are the two bond prerequisites in order to get licensed. If you don’t get this bond, the CSLB won’t issue your license.
Yes, that is correct. No other legal entity has to get this bond. Based on the unique liability protection and the fact that LLCs have higher rates of failing to pay employees, the state of CA has been requiring these bonds since 2012, which was the first year they allowed contractors to organize as LLCs.
$100,000. There is only one limit available. No more, no less.
Here’s a set of price ranges based on the term length:
| Bond Limit | $100,000 | $100,000 | $100,000 |
| Term | 1 Year | 2 Years | 3 Years |
| Total Annual Cost | $975-$2,250 | $1,750-$4,500 | $2,500-$6,750 |
This is not an official quote, of course. This is just an estimate so you know what to possibly expect.
The reason for the variance is that each bond is underwritten by the surety based on how likely they think you are going to file a claim. Here are the primary factors sureties use to determine your price:
Every surety is a little different, but these factors are typically the most common and the most important.
Good news, they are also quick and easy to buy.
Just follow these steps to get your bond in less than five minutes.
It is very easy to maintain your bond, too. Your bond automatically renews every year, as long as you need it. You’ll get an invoice by email.
It’s really that simple! Just click here to get started:
Get Your LLC Employee / Worker Bond Now
Gillespie Insurance Services helps people and businesses in California, Arizona and Nevada.