Contractor’s Bond Basics
A contractor bond is a state requirement for all contractors who are operating within the state of California with a valid contractor’s license. The new bond about effective 1/1/2017 is $15,000. This was increased from just $12,500 the year prior.
A California contractor bond protects consumers against unscrupulous contractors. We have all heard horror stories from homeowners who have decided to remodel their home only to be left with false promises and a contractor who left town with their large deposit.
Homeowners should be sure to look us a potential contractor on the CSLB website in order to verify the person they are considering is licensed and has an active bond in place.
Bonds and Workers Compensation
The bond is a requirements, but it is also important to verify if the contractor does have other people working for them that they also have an active workers compensation policy in place. California state law requires all businesses with employees to carry workers compensation coverage.
This protects the company’s employees, but also protects you (the homeowner) in the event someone is injured on your property. You very well may be held liable and stuck with costly medical bills if the contractor does not have proper workers comp in place.
Work comp is dependent upon the amount of payroll a company had but more importantly the type of work their employees are doing. There are hundreds of different classifications set forth by the WCIRB to properly cover employees.