FREE C-27 LICENSE Bond and Insurance Questions and Answers
What is the purpose of a contractor’s bond for a C-27 license?
The primary purpose of a contractor’s bond is to ensure payment to subcontractors and suppliers (b). It acts as a form of financial protection and ensures that the contractor will adhere to contractual obligations. Personal liability for mistakes and insurance against employee injuries are covered under different types of policies.
What type of insurance is required for a C-27 license holder if they have employees?
Workers' compensation insurance (b) is required if a C-27 license holder has employees. It provides coverage for work-related injuries or illnesses sustained by employees. General liability insurance and professional liability insurance cover different types of risks and are not specifically mandated for this purpose.
How much coverage is typically required for a contractor’s bond?
The amount of coverage required for a contractor’s bond for a C-27 license is generally $15,000 (c). This amount can vary, so it's important to check the most current requirements with the Contractors State License Board (CSLB).
Who benefits from the contractor’s bond?
The client benefits from the contractor’s bond (b), as it ensures that they can recover financial losses if the contractor fails to meet contractual obligations. The bond is primarily designed to protect clients and subcontractors rather than the contractor or government.
What should a contractor do if they do not have employees?
If a contractor does not have employees, they are not required to obtain workers' compensation insurance (c). However, they may still need to have general liability insurance, which covers other types of risks. Always verify specific insurance requirements with the CSLB to ensure compliance.