Surety bonds in California
California has one of the most active surety markets in the country, and businesses statewide regularly encounter bonds when licensing or bidding. Note that the bond protects consumers and the requiring agency — the bonded California business is ultimately responsible for repaying any claim the surety pays.
Bonds commonly required in California
Contractor License Bond
Licensed contractors in California are commonly required to file this bond, which is generally intended to protect consumers and employees.
Motor Vehicle Dealer Bond
Dealers typically must post a bond meant to address certain sales, title, or fee violations.
Notary Public Bond
California notaries are generally required to carry a bond that protects those harmed by notarial errors or misconduct.
Mortgage / Lending Bond
Various lending and mortgage licensees may be required to maintain a surety bond as a licensing condition.
Freight Broker Bond
Property brokers arranging freight may need a federally tied bond that protects carriers and shippers.
Performance & Payment Bonds
Public construction projects often require these bonds to assure completion and payment to subcontractors.
With so many license categories, confirm the precise bond and amount with the obligee or your California licensing board, then request a quote to compare pricing.
A surety bond protects the party requiring it (the obligee) and the public — it is not insurance for your business. If a claim is paid, the principal generally repays the surety. Bond requirements and amounts are set by the obligee and vary by license type and jurisdiction. Verify the exact requirement before you buy.
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