Bond Renewals

[Redbull]

Hello,
I need a contractor license in the state of CA. Does the state of CA require a new bond each year since they are just one year terms? How does the state know that the bond is actually renewed by my just paying the renewal premium? Does the surety company actually send the state something?

[Admin]

Hello,
I need a contractor license in the state of CA. Does the state of CA require a new bond each year since they are just one year terms?

Most license bonds will be required for as long as you operate. However, some obligees only require them for a certain amount of time. You will need to check with the state of California to find out for sure.

How does the state know that the bond is actually renewed by my just paying the renewal premium?

The bond is in effect unless they receive a cancellation notice from the surety. If you do not pay the renewal, the surety will simply cancel the policy and send written notice to the state.

Does the surety company actually send the state something?

No, that is your responsibility. The surety will send you the original bond, which you must sign and send to be filed with the state. The state and the surety will only contact directly if the bond needs to be cancelled or if a claim arises.