Contractor bonds and workers' comp, explained
The contractor's bond
Every active California licensee must keep a $25,000 contractor's bond (or an approved alternative) on file with CSLB. [CSLB] It can help a consumer harmed by a license-law violation recover some money, but $25,000 is small next to most projects and is shared among all claims. If the bond is cancelled and not replaced, the license is suspended ("Contr Bond Susp").
Workers' compensation
Contractors with employees must carry workers' comp. A contractor with no employees may file an exemption, which shows as "Exempt". [CSLB]
- C-8 Concrete, C-20 HVAC, C-22 Asbestos, C-39 Roofing, and C-61/D-49 Tree Service must carry workers' comp even with no employees. [CSLB]
- Starting January 1, 2028, all licensees will need workers' comp regardless of employees (SB 1455 delayed this from 2026). [CSLB]
Why it matters to you: if an "Exempt" contractor shows up with a crew and a worker is hurt on your property, you could face liability. Ask who will be doing the work.