How Much Does a California Contractor License Bond Cost?

A common question we get at Jet is, “how much does your bond cost?” A formal bond quote at Jet will require an industry-standard soft credit check, a review of the contractor’s license history, and the completion of our business-specific underwriting questions. 

This comprehensive application allows us to keep contractor license bond premiums low. As the amount of bond claims increases, the solution most sureties opt for is raising the overall price of the bond or exiting the market completely. The Jet team didn’t think it was fair for a few bad actors in the construction industry to cause a major premium increase for the 95% of honest contractors. That is why Jet’s unique underwriting ensures the most competitive prices for your contractor license bond. 

There are three components to Jet’s application process for our CA contractor license bonds. 

Soft Credit Check

These specific license bonds are based on the personal credit of the licensee, not the business credit. The industry does this to ensure bond claims are paid back. Should the company dissolve yet there is a bond claim, sureties are able to process the claim fully, including collect the funds back from the contractor that may be paid out for valid claims. 

During the application process, a soft credit check will be conducted and a review of the credit report is performed. Since this is a legal requirement of offering the bond, sureties are able to perform this review as a soft check, meaning there will be no impact to your credit score.

Contractor License Review

Jet underwriters also take a look at the license or application fee on the California State License Board (CSLB) website. Some items we look for are current bond status and whether the license has complaint disclosures listed.

Business Underwriting Questions

Our business underwriting questions is what sets Jet apart from all the other sureties. We know that a credit report and your license history don't tell the whole story of you as a contractor. In order to get an idea of how your business runs and reward claim-avoidant business practices, the Jet team asks a series of questions related to the business operations of your specific business. 

The entire application, from start to finish, takes minutes to complete. Give us a call at 916-836-5330 to get started or fill out our online application for an instant quote!