California Law and Business Exam Prep

Contractor Pre-Qualifications

• Pass the written Law and Business Examination and a trade-specific examination
• Have, within the last 10 years, at least four (4) years of experience in industry-related work
  • The experience must be at no less than a journeyman level, or as a foreman, supervising employee, contractor, or owner-builder.
• Meet specified bond, insurance, and other requirements for licensure with CSLB.

Bond and Insurance Requirements

Contractor's Bond

• All contractors must have a $15,000 contractor's bond on file with CSLB.
• An additional $12,500 qualifying individual's bond must be filed for all contractors that are qualified by an RME
• All LLC licenses are required to have an additional $100,000 employee/worker bond of file with CSLB for the benefit of workers employed by or contracted to work for an LLC.

Workers' Compensation Insurance

• Workers' compensation is required when a contractor has employees. The Certificate of Insurance must be issued in the business name shown on the application.

LLC Liability Insurance

• All LLC licenses are required to have liability insurance between $1,000,000 and $5,000,000, determined by the number of personnel of record on the license. For five (5) or fewer personnel, the amount is not less than $1 million. For each additional member of the personnel, the amount increases $100,000, up to a maximum of $5 million.