How to Purchase a $100,000 Employee Worker Bond in California
by Guest Post 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...
90188 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...
71090 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...
70478 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...
49749 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...
29514 Views
Latest Articles
The Appeal and Longevity of Natural Oil Finishes for Hardwood Floors
Hardwood floors exude warmth, character, and timeless appeal in any home. To preserve and enhance these qualities, choosing the right finish is...
on May 17, 2024
Understanding Indonesia’s Real Estate Investment Laws for Foreigners
Indonesia, with its stunning landscapes, deep-rooted cultural heritage, and renowned hospitality, has emerged as a top destination for foreigners...
on Jan 25, 2024
Real Estate Development in Asian Cities
In many Asian cities, the rapid pace of urban development has led to the decline of historic districts, areas once teeming with cultural richness...
on Jan 25, 2024
Shower Envy: Elevating Your Bathroom with a Stunning Walk-In Shower
Are you tired of the same old routine in your bathroom? It might be time to consider a change, and one way to elevate your bathroom to a new level...
on Jan 22, 2024
Exploring Crowdfunding as an Innovative Approach to Real Estate Investment
The landscape of property selling has been transformed significantly due to the advent of property crowdfunding. This innovative approach,...
on Jan 10, 2024
Featured Articles
What Type of Licensed Contractor Should You Hire?
on Feb 28, 2017
Hire Contractors / Estimates
![What Type of Licensed Contractor Should You Hire? What Type of Licensed Contractor Should You Hire?](http://www.411homerepair.com/diy/uploads/a/admin/construction_47639__e04de.jpg)
Looking for a specialty project? There are many types of contractors available for your home improvement needs. Finding the right type of...
Actions
Top Categories
- Garden / Landscaping / Patio — 263
- Kitchen / Bathrooms — 240
- Real Estate / Finance — 200
- Appliance / Repair — 186
- Interior Design / Decor — 184
- HVAC / Air Conditioning — 147
- Cleaning / Maintenance — 144
- Improvements / Remodeling — 131
- Plumbing / Basements — 118
- Floors / Tile / Hardwood — 116
- Doors / Garages — 113
- Safety / Security — 112
Articles Archive
More DIY Articles
Fix Up Your Garden and Make It Look Beautiful Again
Either through bad weather or lack of attention, gardens can fall into a sorry state. But if your garden matches, this category then the good news...
Learning All About the Concertina Loft Ladder
If you are searching for a loft ladder that helps you to save space and that is also very efficient, then you may want to consider the concertina...
Learn How Solar Power can Work for You
Solar is the energy source of the future, and you can start harnessing this incredible energy for your own personal use right now. Over the past...
The Storage Shed You Build Yourself
The marketplace is full of prefab and prebuilt storage sheds. Some companies with come to your property and build a shed on-site in a variety of...
Should I Repair or Replace My Home Heating System?
Now there’s a question we know how to answer, and with a high degree of confidence. Of course, when you have been serving the indoor comfort...