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What happens if my contractor bond is cancelled?

Contractor Surety Bonds · Reviewed October 23, 2026 · By Casey Sullivan, Pembroke Insurance Solutions

What happens if my contractor bond is cancelled?

Surety bonds

CSLB cancels the bond 30 days after it receives the surety's cancellation notice. If no reinstatement or replacement bond is on file by the end of that period, the license is suspended, and any work performed while suspended is treated as unlicensed work: you can be barred from collecting for it and disciplined by CSLB.

To avoid the gap, get a replacement bond with an effective date no later than the cancellation date; CSLB must receive it within 90 days of its effective date, and coverage must be continuous to avoid a break in licensing time. If the surety rescinds its cancellation, CSLB needs the rescission notice within 90 days of the cancellation date. A bond filed late is accepted retroactively only for circumstances beyond your control, by written request (Form 13B-31).

Treat a cancellation notice as a same-day task. Use the bond request form and tell us the cancellation date; a producer prioritises replacements.

Sources: CSLB — Bond basics · CSLB — Bond suspensions

Get a contractor bondContractor's bond, qualifying individual bond and LLC bond.

Last reviewed October 23, 2026 · Link to this answer

About the author

Casey Sullivan is a licensed insurance producer with Pembroke Insurance Solutions (California license #6011028), the agency behind Plumbers Pro. He writes and reviews every guide and FAQ answer on this site; this page was last reviewed on October 23, 2026. Corrections and questions: [email protected].

General information for California plumbing contractors, not legal advice. Coverage depends on the actual policy terms, exclusions, endorsements, underwriting and applicable law. Insurance is offered through Pembroke Insurance Solutions, a licensed insurance agency.