What is a California Qualifying Individual Bond?
A California Qualifying Individual Bond is required by the Contractors State Licensing Board if a company’s construction license is qualified by a Responsible Managing Employee (RME). Additionally, if the company’s construction license is qualified by a Responsible Managing Officer, Member, or Manager who owns less than 10% of the company’s voting stock, the qualifying individual surety bond is needed. The bond is required by the CA Business and Professions Code Section 7071.9.
How do I apply for a California Bond of Qualifying Individual?
- Complete our online California Bond of Qualifying Individual application, or
- Download and complete our printable California Bond of Qualifying Individual application, and
- Receive your surety bond quote in minutes!
What California Qualifying Individual Surety Bond amount do I need?
The bond of qualifying individual amount is set by the state at $12,500.
How can I avoid the California Qualifying Individual Bond?
This bond can be waived by applying to the state for a waiver if the Responsible Managing Officer, Member, or Manager submits a qualifier’s statement of ownership which can be found here. This form must be submitted to the state licensing board who may agree to waive the bonding requirement. However, the surety bond cannot be waived by any Responsible Managing Employee.
What does the California Bond of Qualifying Individual do?
The surety bond required of the qualifying individual is meant to protect against the following:
- Damage to a homeowner’s residence as a result of the contractor’s violation of Chapter 7071;
- A property owner who is damaged by the licensee if the property is not held for sale at the time of the loss;
- A person who is damaged by the contractor due to fraud or a willful violation of Chapter 7071;
- An employee of the contractor who hasn’t been paid wages owed to him or her by the licensee; or
- Damage caused to a person or entity who hasn’t been paid fringe benefits owed by the contractor.
Can I get a bad credit California Bond of Qualifying Individual?
Yes, these surety bonds are available to nearly all individuals with good or bad credit scores. Similar to most credit-based products, the cost of the bond rises as the credit score of the individual decreases. The best way to determine your cost to complete our online application below.
What other California Contractor Bonds will I need?
Regardless of whether you’ll need a qualifying individual bond, the construction company will also need the California contractor license bond. These bonds are required by the state licensing board for all construction licensees. You can visit our CA Contractor License Bond page to learn more about this requirement.
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