Are Home Improvement Contractor’s Bonds Necessary?

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If you’re in California, the short answer is a resounding… YES!

If you’re a contractor…

In order to become a licensed contractor in California, the CSLB (Contractors State License Board) requires contractors to be bonded.

In addition to getting bonded for your license, if you haven’t already done so, you should consider getting subcontractor bonds to reduce your risk from subcontractor defaults. We offer subcontractor performance bonds (a guarantee to the owner that the work in the contract will be performed) and subcontractor payment bonds (a guarantee that the subcontractor will pay laborers and suppliers for the project).

As homeowners continue to be more savvy when hiring contractors, getting a contractor bond from an established and reputable bond company is imperative. More often than not, homeowners are asking for copies of the bond information up front before even making a decision.

If you’re a homeowner looking to hire a contractor…

If you’re in the market for hiring a contractor, the first thing you need to do is make sure that the contractor you are interviewing is a licensed and bonded contractor in California. Luckily, it’s quite easy to verify a Contractor’s license in California. All you need is their license number and then you can use the CSLB’s website to verify a contractor’s license. The website will even show you the bonding information!

There are a few more things you should consider before hiring a contractor:

  • Make sure that you have adequate homeowner’s insurance coverage that will cover your home and property during remodeling.
  • Make sure the contractor has proper insurance. Ask for and make copies of their insurance certificates for both General Liability and Worker’s Compensation.
  • Confirm the contractor’s liability coverage.
  • Ask and confirm if the contractor has subcontractor’s insurance and/or bonds.

If you’re unsure about your homeowners insurance policy, contact your broker. If you are in the market for new homeowner’s insurance, fill out our free online quote and we can get you ready for your home improvement project.


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