A contractor needs a current bond to maintain an active license in California. Scope of Cover found that a separate Bond of Qualifying Individual for a Responsible Managing Employee or Officer may also be required in the amount of $25,000. An exemption from this specific bond is possible for certain owners.
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In addition, you may need to submit a separate Bond of Qualifying Individual or Information on Alternatives in Lieu of Bond Requirements in the amount of $25,000 for the Responsible Managing Employee (RME) or the Responsible Managing Officer (RMO).Open the source
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However, CSLB may grant an exemption from the requirement to file a Bond of Qualifying Individual if the RMO certifies that he or she owns 10 percent or more of the voting stock or equity of the corporation for which he or she is to serve as the qualifying individual.Open the source
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An acceptable bond must be received at the CSLB Headquarters Office within 90 days of the effective date of the bond.Open the source
#Who Needs a Contractor Bond in California?
To maintain an active license in California, a contractor must maintain a current contractor's bond. This is a condition for licensure. A contractor must also have workers' compensation insurance coverage.
In some cases, a separate Bond of Qualifying Individual (BQI) may also be required for a Responsible Managing Employee (RME) or Responsible Managing Officer (RMO).
#How Much is the Bond of Qualifying Individual?
The separate Bond of Qualifying Individual or an equivalent has a required amount of $25,000. This bond applies to the Responsible Managing Employee or Responsible Managing Officer.
The Contractors State License Board (CSLB) may grant an exemption from the BQI requirement. This is possible if the RMO certifies ownership of 10 percent or more of the voting stock or equity of the corporation they qualify.
#What Are the Rules for Sourcing and Filing a Bond?
A contractor bond must be written by a surety company that is licensed by the California Department of Insurance.
After a bond is issued, it must be filed correctly. An acceptable bond must be received at the CSLB Headquarters Office within 90 days of the effective date of the bond.
Frequently asked questions
What is required to maintain an active California contractor license?
To keep a license active, a contractor must maintain a current contractor's bond, a Bond of Qualifying Individual if required, and workers' compensation insurance coverage.
How much is the Bond of Qualifying Individual (BQI)?
The Bond of Qualifying Individual, which may be required for a Responsible Managing Employee or Officer, is set at $25,000.
Can a qualifying individual be exempt from the BQI bond?
Yes. The CSLB may grant an exemption if the Responsible Managing Officer certifies that he or she owns 10 percent or more of the company's voting stock or equity.
Who can write a contractor license bond in California?
The bond must be from a surety company licensed through the California Department of Insurance.
What is the deadline for filing a contractor bond with the CSLB?
A bond must be received at the CSLB Headquarters Office within 90 days of its effective date.
Sources
- CSLB: Issuing my licenseContractors State License Board · retrieved
- CSLB: General bond informationContractors State License Board · retrieved
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