License & Permit
Contractor Disciplinary Bond
A contractor disciplinary bond is an extra bond a licensing board orders a contractor to file before a suspended or revoked license can be reinstated or a new license issued.
- Required by
- State contractor licensing boards (for example, the California Contractors State License Board)
- Bond amount
- Set by whoever requires the bond. We confirm it.
What this bond guarantees
The bond promises the state licensing agency that the contractor will follow the contractor license law going forward. It is filed in addition to the regular contractor license bond. A claim can follow if the contractor again violates the law and someone is harmed.
Who needs it
- Contractors whose license was suspended or revoked for a license law violation
- Contractors seeking reinstatement or a new license after discipline
- Qualifying individuals tied to a disciplined license
What the underwriter looks at
- The reason for the discipline and the board's order
- Personal credit of the owners
- Financial statements and working capital
- Claims history
Requirements vary by state and by who asks for the bond. Send us the request you received and we will confirm exactly what it calls for.
Common questions
How much is the bond?
The licensing board sets the amount in its order. In California, the Registrar sets it based on how serious the violation was, with a $25,000 minimum and a maximum of ten times the contractor bond amount.
How long do I have to keep it?
In California it must stay on file for at least two years, and the Registrar can require longer. If the license goes inactive or is suspended during that time, the period is extended.
Does this replace my contractor license bond?
No. It is filed in addition to the regular license bond.