California CSLB Bonds

CSLB Bond of
Qualifying Individual

The $12,500 surety bond required for Responsible Managing Employees (RME) and Responsible Managing Officers (RMO) who qualify a California contractor license.

Required in addition to the standard $25,000 CSLB contractor license bond when the qualifying individual is not an owner of the company.

Dedicated Account Support
Independent Broker
Fast Certificate Issuance
Competitive Rates
Top Insurance Markets
Financing Available

$12,500

Required Bond Amount

$100–$200

Typical Annual Premium

Same Day

Bond Issuance

CSLB

Filed Directly

What Is the Bond of Qualifying Individual?

When a California contractor license is qualified by a Responsible Managing Employee (RME) or Responsible Managing Officer (RMO) who does not own at least 10% of the business, the CSLB requires an additional surety bond — the Bond of Qualifying Individual — in the amount of $12,500.

This bond is filed in the name of the qualifying individual (not the company) and runs alongside the standard $25,000 contractor license bond. Both must be active at all times for the license to remain in good standing.

The Bond of Qualifying Individual protects consumers and the state if the RME or RMO commits fraud, abandons a project, or violates contractor licensing laws while acting in their qualifying capacity.

ℹ️

Not sure if you need this bond? If your RME or RMO owns 10% or more of the company, this bond is not required. Call us — we'll confirm your specific situation before you purchase.

👤

Filed in the Qualifying Individual's Name

The bond is issued and filed under the RME or RMO's name, not the company's.

In Addition to the $25,000 License Bond

Both bonds must be maintained simultaneously. The qualifying individual bond does not replace the standard license bond.

📋

Required by the CSLB

Mandated by California Business and Professions Code. Missing this bond suspends the license.

🔄

Tied to the Qualifying Individual

If the RME/RMO leaves the company, this bond must be cancelled and re-filed with the new qualifier.

💰

Very Affordable

Most qualifying individuals pay $100–$200 per year for the $12,500 bond.

Same-Day Issuance Available

Altamira can issue and file this bond the same business day in most cases.

RME vs. RMO — Who Needs This Bond?

The bond requirement applies to both types of qualifying individuals who don't own at least 10% of the company.

👷

Responsible Managing Employee (RME)

An employee (not an officer or owner) who actively manages the construction operations of the licensed company. They must be employed full-time and cannot qualify multiple licenses simultaneously.

  • Must be a full-time employee of the company
  • Cannot qualify more than one license at a time
  • Bond required if they own less than 10% of the company
🏢

Responsible Managing Officer (RMO)

An officer of the company (president, VP, secretary, treasurer, or active member of the LLC) who is responsible for qualifying the contractor license. RMOs may qualify multiple licenses.

  • Must be an active officer of the licensed entity
  • Can qualify multiple licenses simultaneously
  • Bond required if they own less than 10% of the company

Not sure which applies to your situation?

Call us and we'll help you determine exactly what bonds your license requires before you spend a dime.

Call (435) 272-8042

CSLB Bond Requirements at a Glance

Bond Type Filed In Name Of Bond Amount Est. Annual Cost Who Needs It
Contractor License Bond The licensed company $25,000 $100–$300/yr All CA licensed contractors
Bond of Qualifying Individual The RME or RMO $12,500 $100–$200/yr RME/RMO owning less than 10%

Both bonds must remain active simultaneously when required. Altamira can handle both in one place.

How to Get Your Bond of Qualifying Individual

Most bonds are issued and filed the same day.

01

Apply Online

Fill out our short form with the qualifying individual's name, license number, and basic information.

02

Credit Review

A soft credit check is run on the qualifying individual. Most applications are approved within minutes.

03

Bond Issued

Your $12,500 Bond of Qualifying Individual is issued — often the same business day.

04

Filed with CSLB

We file the bond directly with the Contractors State License Board electronically.

Bond of Qualifying Individual FAQ

What is a CSLB Bond of Qualifying Individual?
A Bond of Qualifying Individual is an additional $12,500 surety bond required by the California Contractors State License Board (CSLB) when the person qualifying a contractor license — a Responsible Managing Employee (RME) or Responsible Managing Officer (RMO) — is not an owner of the licensed company. It is separate from and in addition to the standard $25,000 contractor license bond.
Who is required to file a Bond of Qualifying Individual?
The Bond of Qualifying Individual is required whenever a Responsible Managing Employee (RME) or Responsible Managing Officer (RMO) qualifies a license on behalf of a company but does not own at least 10% of the business. If the qualifying individual owns 10% or more of the company, the bond is not required.
How much does a Bond of Qualifying Individual cost?
The required bond amount is $12,500. The annual premium — what you actually pay — is typically $100 to $200 per year depending on the qualifying individual's credit history and the surety company used. Applicants with good credit pay toward the lower end of that range.
Is the Bond of Qualifying Individual in addition to the $25,000 contractor license bond?
Yes. The Bond of Qualifying Individual is a completely separate requirement from the standard $25,000 CSLB contractor license bond. A company with an RME or RMO who is not an owner must maintain both bonds simultaneously — the $25,000 license bond in the company's name and the $12,500 qualifying individual bond in the RME or RMO's name.
What happens if the qualifying individual leaves the company?
If the RME or RMO disassociates from the company, the CSLB must be notified immediately. The contractor license will be suspended unless a new qualifying individual is added and the appropriate bond is filed. Transitions should be managed carefully to avoid a license lapse.
Can the same person be named on both bonds?
The $25,000 contractor license bond is filed in the name of the licensed entity (the company). The Bond of Qualifying Individual is filed in the name of the qualifying individual (the RME or RMO). They are different bonds for different parties, even if the qualifying individual has a stake in the company.
How quickly can I get a Bond of Qualifying Individual?
Altamira can typically issue the Bond of Qualifying Individual the same business day. Once issued, it is filed directly with the CSLB electronically. Most applicants receive their bond within hours of applying.

Need a Bond of Qualifying Individual?

We issue and file with the CSLB same day. Get a quote now or call us with questions about your specific license situation.

Also need the standard contractor license bond? Learn about the $25,000 CSLB bond →

Work With an Independent Broker

We work with top-rated carriers across the markets that matter most for your line of business.

Call Now