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 the friction.
We specialize in helping contractors get insured and bonded and have been doing so for the last 20 years.
If you’re familiar with contractors license bonds, know what you need, and are ready to buy, just click below to apply for your bond in about five minutes – and typically get an approved quote by the same or next business day.
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.
A license bond is a specific type of bond that exists primarily to guarantee that you, the contractor, are lawfully licensed by the governing body, such as The State of California, and that you will comply with state laws and regulations.
A license bond protects the public (not you) such as your customers, suppliers, and even employees from financial harm that you have caused. What kind of things could you do that harms the public that could be covered on your bond? Here are a few examples:
Perhaps the simplest way to say it is this: the bond basically guarantees you are who you say you are and that you’ll do what you say you’ll do.
| Other Potential Bonding Requirements! |
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| There are a few other common types of bonds that contractors frequently need. |
No, absolutely not. A bond is NOT insurance.
General Liability insurance pays for bodily injury or property damage that you’ve caused to others and are held liable for. General Liability pays for mistakes. Bonds pay for fraud or misrepresentation.
One of the main differences between bonds 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. Yes, you read that correctly. I’ll say it again: if your surety pays money to someone because of a covered loss, you will have to pay the surety back.
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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 |
All licensed contractors in California – whether you are A, B, C, or D licensed – are required to get a contractor’s license bond.
In fact, getting a license bond is a prerequisite to getting the license. If you don’t get the bond, the CSLB won’t issue your license.
You don’t have to take my word for it, here’s the CSLB’s website explaining the rules about bonding: https://www.cslb.ca.gov/About_Us/Library/Forms_And_Applications.aspx
In California, you need to be bonded for $25,000. This is the simplest of all bonds. When you apply for a license bond, the surety automatically knows that you need $25,000.
If you get your bond here, we will automatically, electronically file your bond with the CSLB. You do not need to upload, email, fax, or mail a copy of your bond to the CSLB. There are no additional steps – just get your bond and move on to the next thing!
Fortunately, they are inexpensive. Here’s an example of a typical price range based on 1-3 years.
| Bond Limit | $25,000 | $25,000 | $25,000 |
| Term | 1 Year | 2 Years | 3 Years |
| Total Annual Cost | $200-$350 | $400-$700 | $600-$1050 |
You’ll see that the rates can vary a bit. Rates are based primarily on the following:
There are other factors that sureties use, such as how long you’ve been in business, how much cash you have on hand, and a few others, but those two items are by far the most important. If your credit score is good and you’re claim-free, expect to be on the low end of the rating band!
Good news, they are also quick and easy to buy.
Just follow these steps to apply for a bond in less than five minutes.
It is super simple 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:
Gillespie Insurance Services helps people and businesses in California, Arizona and Nevada.