Surety bonds are often required for California business licenses, contractor licenses, and professional certifications. Here's a plain-English explanation of how they work.
If you're applying for a California contractor's license, a notary commission, or certain other professional licenses, you've probably encountered the phrase "must be bonded." Here's what that actually means.
This is the most important thing to understand. Insurance protects you from losses. A surety bond protects the people you work for — or the state — from losses caused by you.
A surety bond is a three-party agreement:
If a claim is made against your bond, the surety pays it — but then comes after you for reimbursement. Unlike insurance, you're ultimately responsible for any claims paid.
Surety bond premiums are typically 1–3% of the bond amount per year, depending on your credit history. Examples:
We write surety bonds at all three California locations — Stockton, San Jose, and San Rafael. Most bonds can be issued same day. Walk in or call 209-670-1556. Se habla español.
Ready to get covered? Via Rapida serves Stockton, San Jose, and San Rafael with bilingual agents and no broker fees on standard policies.
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