A California contractor's license will be suspended if a required bond or workers' compensation policy lapses. Any work performed during a suspension is considered unlicensed. Scope of Cover found a bond suspension can be lifted if the surety company provides a rescission notice within 90 days of the bond's cancellation. For a workers' compensation lapse, the suspension is lifted after the Contractors State License Board (CSLB) receives and processes acceptable proof of coverage.
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The rescission notice must be received within 90 days of the bond cancellation dateOpen the source
#What Happens When a Contractor's Bond Is Cancelled?
A California contractor's license is placed under bond suspension if the surety company cancels the bond. A suspension also occurs if a judgment or payment of a claim reduces the amount of a required bond or cashier's check.
Any work performed while a license is suspended is considered unlicensed. This can result in disciplinary action.
#What If a Workers' Comp Policy Lapses?
California contractors must maintain continuous workers' compensation coverage. Failure to maintain this insurance will result in the suspension of a contractor's license.
A license is suspended if the workers' compensation policy expires or if the insurance company cancels it.
#How Is a Suspended License Reinstated?
A suspension from a cancelled bond can be lifted. This happens if a rescission notice from the surety company is received within 90 days of the cancellation date.
A workers' compensation suspension is lifted after acceptable proof of workers' compensation insurance coverage is received and processed at the CSLB's Headquarters.
Frequently asked questions
What happens if a contractor works with a suspended license in California?
Any work performed while a California contractor's license is suspended is considered unlicensed work and may lead to disciplinary action.
Can a license be suspended if a claim reduces the bond amount?
Yes, a California contractor's license will be suspended if a judgment or the payment of a claim reduces the amount of a required bond.
Does an expired workers' compensation policy cause a license suspension?
Yes, a California contractor license will be suspended if the workers' compensation insurance policy expires.
How long do I have to fix a cancelled bond before the suspension is permanent?
A bond suspension can be reversed if a rescission notice is received from the surety within 90 days of the bond's cancellation.
Sources
- CSLB: Bond suspensionsContractors State License Board · retrieved
- CSLB: Suspended licenseContractors State License Board · retrieved
- CSLB: Workers' compensation insurance for licenseesContractors State License Board · retrieved
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