{
  "url": "https://scopeofcover.com/requirements/ca/license-suspension-lapsed-bond-or-insurance",
  "title": "California Contractor License Suspension for Lapsed Insurance",
  "template": "requirements",
  "published": "2026-10-03",
  "updated": "2026-10-03",
  "last_verified": "2026-10-03",
  "answer": "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.",
  "editor": {
    "name": "Eric Dawson",
    "title": "Editor"
  },
  "publisher": "scopeofcover.com",
  "claims": [
    {
      "claim_id": "ca-license-suspension-bond-cancellation",
      "statement": "A California contractor's license will be placed under bond suspension if the surety company cancels the bond.",
      "value": "bond suspension",
      "unit": "status",
      "as_of": "2026-10-02",
      "jurisdiction": "CA",
      "source_url": "https://www.cslb.ca.gov/contractors/maintain_license/bond_information/bond_suspensions.aspx",
      "quote": "Your license will be placed under bond suspension if any of the following occur: Your surety company cancels your bond(s).",
      "retrieved": "2026-10-02"
    },
    {
      "claim_id": "ca-license-suspension-judgment-reduces-bond",
      "statement": "A California contractor's license will be placed under bond suspension if a judgment or payment of claim reduces the amount of a required bond or cashier's check.",
      "value": "bond suspension",
      "unit": "status",
      "as_of": "2026-10-02",
      "jurisdiction": "CA",
      "source_url": "https://www.cslb.ca.gov/contractors/maintain_license/bond_information/bond_suspensions.aspx",
      "quote": "A judgment or payment of claim reduces the amount of a required bond or cashier's check (Business and Professions Code Section 7071.11).",
      "retrieved": "2026-10-02"
    },
    {
      "claim_id": "ca-license-suspension-workers-comp-cancellation",
      "statement": "A California contractor license will be suspended if the workers' compensation insurance company cancels the policy.",
      "value": "suspended",
      "unit": "status",
      "as_of": "2026-10-02",
      "jurisdiction": "CA",
      "source_url": "https://www.cslb.ca.gov/contractors/license_problems/Suspended_License.aspx",
      "quote": "Your workers' compensation insurance company cancels your policy.",
      "retrieved": "2026-10-02"
    },
    {
      "claim_id": "ca-license-suspension-workers-comp-expired",
      "statement": "A California contractor license will be suspended if the workers' compensation insurance policy expires.",
      "value": "suspended",
      "unit": "status",
      "as_of": "2026-10-02",
      "jurisdiction": "CA",
      "source_url": "https://www.cslb.ca.gov/contractors/license_problems/Suspended_License.aspx",
      "quote": "Your workers' compensation insurance policy expired.",
      "retrieved": "2026-10-02"
    },
    {
      "claim_id": "ca-contractor-license-work-while-suspended",
      "statement": "Any work performed while a California contractor's license is suspended is considered unlicensed and may result in disciplinary action.",
      "value": "unlicensed",
      "unit": "status",
      "as_of": "2026-10-02",
      "jurisdiction": "CA",
      "source_url": "https://www.cslb.ca.gov/contractors/maintain_license/bond_information/bond_suspensions.aspx",
      "quote": "Any work performed while the license is suspended is considered to be unlicensed and disciplinary action can be taken against you.",
      "retrieved": "2026-10-02"
    },
    {
      "claim_id": "ca-bond-cancellation-rescission-deadline",
      "statement": "A bond suspension can be lifted if a rescission notice is received from the surety company within 90 days of the bond cancellation date.",
      "value": "90",
      "unit": "days",
      "as_of": "2026-10-02",
      "jurisdiction": "CA",
      "source_url": "https://www.cslb.ca.gov/contractors/maintain_license/bond_information/bond_suspensions.aspx",
      "quote": "The rescission notice must be received within 90 days of the bond cancellation date",
      "retrieved": "2026-10-02"
    },
    {
      "claim_id": "ca-workers-comp-continuous-coverage",
      "statement": "Workers' compensation coverage for California contractors must be continuous.",
      "value": "continuous",
      "unit": "status",
      "as_of": "2026-10-02",
      "jurisdiction": "CA",
      "source_url": "https://www.cslb.ca.gov/contractors/maintain_license/workers_compensation.aspx",
      "quote": "Workers' compensation coverage must be continuous.",
      "retrieved": "2026-10-02"
    },
    {
      "claim_id": "ca-workers-comp-lapse-license-suspension",
      "statement": "Failure to maintain workers' compensation insurance coverage will result in the suspension of a California contractor's license.",
      "value": "suspended",
      "unit": "status",
      "as_of": "2026-10-02",
      "jurisdiction": "CA",
      "source_url": "https://www.cslb.ca.gov/contractors/maintain_license/workers_compensation.aspx",
      "quote": "Failure to maintain workers' compensation insurance coverage will result in the license being suspended.",
      "retrieved": "2026-10-02"
    },
    {
      "claim_id": "ca-workers-comp-suspension-lift-proof-of-coverage",
      "statement": "A workers' compensation suspension will be lifted once acceptable proof of workers' compensation insurance coverage is received and processed at CSLB's Headquarters.",
      "value": "proof of workers' compensation insurance coverage",
      "unit": "document",
      "as_of": "2026-10-02",
      "jurisdiction": "CA",
      "source_url": "https://www.cslb.ca.gov/contractors/maintain_license/workers_compensation.aspx",
      "quote": "Once acceptable proof of workers' compensation insurance coverage is received and processed at CSLB's Headquarters, the workers' compensation suspension will be lifted.",
      "retrieved": "2026-10-02"
    }
  ],
  "sources": [
    {
      "title": "CSLB: Bond suspensions",
      "url": "https://www.cslb.ca.gov/contractors/maintain_license/bond_information/bond_suspensions.aspx",
      "publisher": "Contractors State License Board",
      "retrieved": "2026-10-02"
    },
    {
      "title": "CSLB: Suspended license",
      "url": "https://www.cslb.ca.gov/contractors/license_problems/Suspended_License.aspx",
      "publisher": "Contractors State License Board",
      "retrieved": "2026-10-02"
    },
    {
      "title": "CSLB: Workers' compensation insurance for licensees",
      "url": "https://www.cslb.ca.gov/contractors/maintain_license/workers_compensation.aspx",
      "publisher": "Contractors State License Board",
      "retrieved": "2026-10-02"
    }
  ],
  "license": "CC BY 4.0. Attribute to Scope of Cover (https://scopeofcover.com/)."
}