LLC Employee/Worker Bond ($100,000)
Required for every limited liability company licensee, in addition to the $25,000 contractor's bond, for the benefit of workers if the LLC fails to pay wages or benefits (B&P §7071.6.5).
This is the bond amount (penal sum), not your premium. The premium is a fraction of it, set by the surety and quoted before you buy.
Who needs it: Every LLC licensee, for issuance, renewal, reactivation and reinstatement of the license. Corporations and sole proprietors do not file this bond.
What CSLB requires
- An LLC licensee must file a $100,000 surety bond in addition to the $25,000 contractor's bond (Business and Professions Code §7071.6.5).
- The bond is for the benefit of employees or workers damaged by the LLC's failure to pay wages, interest on wages, fringe benefits or other contributions.
- It is required for issuance of active and inactive licenses, reissuance, reinstatement, reactivation and renewal. Inactive licenses are exempt from the bond requirement.
- LLC licensees must also carry general liability insurance with a cumulative limit of at least $1,000,000 for five or fewer personnel of record, plus $100,000 for each additional person of record, not required to exceed $5,000,000 (B&P §7071.19), written by a California-licensed or eligible surplus lines insurer.
- If the LLC's registration is suspended by the Secretary of State, each person within the LLC may be held personally liable up to $1,000,000 each while suspended (B&P §7076.2).
Source: CSLB bond requirements and bond suspension pages, reviewed October 23, 2026. Requirements can change; confirm at cslb.ca.gov.
Questions about this bond
Why does an LLC need an extra bond?
When California allowed contractors to license as LLCs, the legislature added protections for workers and the public that the corporate form did not carry: the $100,000 worker bond and the liability insurance requirement. They are conditions of the LLC license, not optional.
Is the $100,000 bond expensive?
The premium is a fraction of the amount and is underwritten mostly on the owners' credit and the company's history. It is quoted before you buy. We don't publish rates because they vary by applicant.
Can one bond cover both the $25,000 and the $100,000 requirements?
No. They are separate bonds for separate beneficiaries, each filed with CSLB. Most sureties will write both together, and we request them together.
We're converting from a corporation to an LLC. What changes?
The LLC needs its own license (or a reissued one), the $25,000 contractor's bond, the $100,000 worker bond, and proof of the liability insurance. Talk to a producer before the conversion so the bonds and the policy are ready on the effective date.
Request your contractor bond
Online quoting and purchase through our surety partner is being activated. Until then, a licensed Pembroke producer handles each request personally, usually the same business day. No payment is collected on this page.
Surety bonds are underwritten and issued by surety companies licensed by the California Department of Insurance, placed through Pembroke Insurance Solutions, a licensed insurance agency. Plumbers Pro is a service of Pembroke and is not a surety company. The bond amount (penal sum) is the surety's maximum liability under the bond, not the premium you pay; the premium is set by the surety based on underwriting and is quoted before you buy. Approval is not guaranteed. Bond requirements are set by the Contractors State License Board and can change; verify current requirements at cslb.ca.gov.