How to Purchase a $100,000 Employee Worker Bond in California
by Guest on Sep 16, 2020
Drastic situations they say require drastic actions.
Going back in history, there have been discrepancies in the way Limited Liability Construction Companies run their affairs. This is caused by insufficient case laws to clarify how these organizations should be run.
In light of this, a key administrative institution in California: Contractors State License Board (CSLB), have a working plan to help. It is called the “Employee Worker Bond”.
In this article, we will shed light on this legal agreement as well as how to purchase it.
What is an Employee Worker Bond in California?
This is a legal document obtained by a construction company. It is filed through a surety (which is usually a company), assuring the state that the construction company they are filing for will abide by the rules and regulations set forth by the state. The value of this bond has to be $100,000.00.
Is getting this bond a mandatory thing?
It is an important requirement! Though an LLC construction company can kick off without it, without the assurance that the certification offers, their reputation will suffer. This means that certain kinds of jobs will not be entrusted to such a contractor because this bond protects potential clients should things go south. So, dealing with a company that has this validation is reassuring for clients.
More importantly, it is a requirement for obtaining a contractor’s license. This is a particularly important validation for construction companies. To be entitled to have this validation, there is a need for a functional employee worker bond.
With the bond gotten and filed, the administering of the construction company will have to align with the policies of the Contractors State License Board. To find out more about the function of this institution, you can visit: https://www.cslb.ca.gov/.
As opposed to insurance policies, when any of the CSLB rules are breached, the company faces the consequences. This can require compensations given to aggrieved parties.
To steer clear of incurring such losses, contractors with this bond are careful to stay within these regulations.
What Companies are Entitled to this Bond?
As explained above, a California $100,000 employee worker bond is required before a contractor's license can be obtained. This obviously means that companies that wish to acquire contractors’ licenses must purchase it.
However, not every construction company needs to meet this requirement by the Contractors State License Board. There are 3 kinds of contractors clearly identified by the CSLB as requiring this surety filing. They include General building construction companies, General engineering construction companies, and Specialty construction companies.
General Building Construction Companies
General building contractors are focused on constructing storage facilities, residential structures, animal enclosures, among others.
General Engineering Construction Companies
General engineering contractors are focused on constructing things like sewages, control barriers to protect against floods, overpasses, water distribution mechanisms, among others. These kinds of construction companies require a great deal of civil engineering knowledge.
Specialty Construction Companies
As the name suggests, these kinds of contractors are into construction projects that require unconventional tradecraft, knowledge, and skills.
It is worthy to note that these are not the only companies bound by the licensing of the CSLB. However, other companies will require a different kind of license agreement. Examples include roofing companies, as well as swimming pool companies.
Requirements for Getting an Employee Worker Bond in California
In the state of California, a construction company must meet certain requirements before trying to present this filing. Failure to do these will automatically mean that the bond will not be obtained, denying them the possibility of getting a contractor’s license. The requirements are listed below.
A Minimum Liability Insurance of $1,000,000s
This is an active insurance package that takes care of damages that occur in the course of carrying out a contract. The insurance cover must be for a minimum of $1,000,000.
Personnel Records
Acquiring this contract takes a great deal of transparency. To get a bond of this nature, the company has to tender its personnel records. This is a detailed record of every employee in the company.
All Business Permits and Licenses
This is to prove that the construction company is not found wanting in getting every accreditation required.
Registration Records of Business Name
Documents of this nature also have to be tendered before the bond is obtainable.
Conclusion
Getting an employee worker bond is an ideal thing for relevant construction companies in California. It proves the company is credible while also protecting the interests of the employees and clients.
Going through this process with as little stress as possible requires that you work with a reputable and experienced surety company. Once you have one such company to work with, the rest of the process will be easier.
Popular Articles
Three Places to Spend Money on the Exterior of Your Home
When you have the exterior of your home remodeled, you are investing, time, energy and convenience into the project and you want to make sure that...
74077 Views
When to Use a Brush, Roller or Sponge Brush
Brushes are a good choice for painting trim and woodwork. They are also useful for cutting in the edges around the top and bottom edges and corners...
67745 Views
Homemade Headboards-Make an Upholstered or Wooden Headboard
Homemade headboards can add a lot of personality to any bedroom. They can be coordinated with existing furniture and room decor or they can be the...
63666 Views
Creating a Cottage Kitchen with Bead Board
Kitchen decor can range from modern and bold to elegant and elaborate by using strategic kitchen pieces. One of the most popular decorating trends...
43693 Views
Gas Fireplace Diagnostics and Troubleshooting
Follow these steps for diagnosing and troubleshooting Gas Fireplaces repairs. For the average DIYer, this may seem intimidating, depending on the...
27129 Views
Latest Articles
Navigating Singapore's Property Regulations: A Guide for Foreign Investors
Singapores property market has been attracting foreign investors for many years, thanks to its stable economy, strong legal system, and transparent...
on Mar 22, 2023
What Truck Size Do I Need to Move a 3-Bedroom House
Moving to a new home can be a complex and stressful process, but with the help of the right truck size, you can make it a smooth and seamless...
on Feb 13, 2023
Five Tips to Take Better Care of Your Basement Insulation
Basement waterproofing is an essential part of home maintenance, as it helps to protect the basement from moisture, flooding, and other...
on Feb 12, 2023
Homeowner In The UK? Here's Why You Need to Know about Rainwater Drainage Systems
In the United Kingdom, there is an average of around 1,200 millimeters of rainfall annually. Keeping rainwater out of your home and away from your...
on Feb 2, 2023
What are the Advantages of a Metal Roof
Metal roofing is durable and beautiful, allowing a home to stand out from others with conventional tiled roofs. A metal coating can last a...
on Feb 1, 2023
Featured Articles
What Type of Licensed Contractor Should You Hire?
on Feb 28, 2017
Hire Contractors / Estimates

Looking for a specialty project? There are many types of contractors available for your home improvement needs. Finding the right type of...
Sponsored Articles
Real Estate Investment for the Next Generation
on Oct 18, 2022
Real Estate / Finance

Investing in real estate is something that people have been doing for a long time. Most people invest in a home, so they can stay at the home. This...
Real Estate Investment for Future Generations
on Mar 14, 2022
Real Estate / Finance

Purchasing a home is not simply a financial commitment. It is also an excellent way to start accumulating your wealth. Your home is also a...
Can I Sell My House with a Leaky Roof?
on Oct 28, 2021
Real Estate / Finance

The answer to this query is YES. It is possible to sell a house with a leaking roof, but it's always essential to evaluate some factors before...
Actions
Top Categories
- Garden / Landscaping / Patio — 260
- Kitchen / Bathrooms — 239
- Real Estate / Finance — 195
- Appliance / Repair — 185
- Interior Design / Decor — 183
- HVAC / Air Conditioning — 147
- Cleaning / Maintenance — 143
- Improvements / Remodeling — 131
- Plumbing / Basements — 118
- Floors / Tile / Hardwood — 115
- Doors / Garages — 113
- Safety / Security — 112
Articles Archive
More DIY Articles
12 Steps for Household Mold Removal
Elevated levels of indoor household mold growth are very unhealthy for both homeowners and renters. Here are 12 steps for safe and effective,...
How to Make the Most out of a Small Kitchen
A kitchen isn’t merely a place to whip up your meals; it’s the centerpiece of your home. This is where family and friends gather, and where...
5 Reasons Why You Should Use Wrought Iron
Wrought iron can be used for a variety of things, such as railings, balusters, and fences. While wrought iron itself is generally aesthetically...
How to Give Your Bathroom a New Look on a Budget
A bathroom is one of the most vital rooms in any house and, whether big or small, it is a space that is constantly in use. Being a room that...
How Colors Can Have an Impact in the Kitchen
If you have ever walked into your kitchen and your thoughts have turned to how hungrier you are than you first thought, it could have something to...