California legislators argue that if the limits of contractor license bond amounts are not adjusted, consumers' ability to recover from a potential loss substantially diminishes. As a result, last September's Senate Bill 607 increased the bond limit to ensure contractors have sufficient financial backing to complete a job. (Credit: Vitalii Vodolazskyi/Adobe Stock)
All California licensed contractors — including plumbing, electrical and artisan contractors — must have a license bond with the California Contractors State License Board. And while the purpose of a contractor bond hasn't changed, the limits and costs have.
Effective Jan. 1, 2023, the California Contractors State License Board is set to increase the principal bond limits — including those for a responsible managing officer/employee — from the existing limits of $12,500 or $15,000 to a new limit of $25,000.
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