On this page
- A license bond guarantees you'll follow licensing law — it protects consumers, not you.
- If the surety pays a claim, you repay the surety.
- California: $25,000 (BPC §7071.6). Washington: $30,000 general / $15,000 specialty since July 1, 2024.
- Nevada sets each bond between $1,000 and $500,000 (NRS 624.270).
The three parties
A surety bond has three parties: the principal (you, the contractor), the obligee (the state licensing agency, on behalf of consumers) and the surety (the company that issues the bond).
What happens when someone files a claim
- A consumer or the state makes a claim against your bond for a licensing-law violation.
- The surety investigates.
- If the claim is valid, the surety pays up to the bond amount.
- You reimburse the surety — the bond is credit, not coverage.
Check the license behind the policy
Insurers and clients look at your license status first. See what the state shows for you — free.
Bond vs insurance
| License bond | General liability | |
|---|---|---|
| Protects | Consumers / the state | You, against third-party claims |
| Who ultimately pays a claim | You (repay surety) | Insurer |
| Required by | Licensing boards (CA, WA, OR, AZ, NV…) | Some boards (WA, OR), clients, GCs |
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Official amounts by state
| State | License bond | Source |
|---|---|---|
| California | $25,000 | BPC §7071.6 |
| Washington | $30,000 general / $15,000 specialty | RCW 18.27.040 |
| Oregon | By endorsement | Oregon CCB |
| Arizona | By license type and volume | AZ ROC |
| Nevada | $1,000–$500,000, set by the Board | NRS 624.270 |
Washington's amounts rose from $12,000 / $6,000 on July 1, 2024. Arizona also offers the Residential Contractors' Recovery Fund route; Nevada can require a $100,000 Consumer Protection Bond under AB 39 for certain down-payment practices.
Getting bonded
- Confirm your license type and the official amount
- Get the bond from a surety licensed in your state
- Make sure it's filed with the agency
- Calendar the renewal date
Check the license behind the policy
Insurers and clients look at your license status first. See what the state shows for you — free.
FAQ
Is a bonded contractor safer?
A bond gives consumers a route to recover money for licensing-law violations, up to the bond amount. It is not a guarantee of work quality — check the license status too.
Still unsure?
Answer 3 quick questions and we'll point you to the right official rules.