California Surety Bonds
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Common Surety Bonds in California
These are the more common bonds in your state. For a list of all of your state’s bonds and federal bonds available click the big blue button for more! If it’s not listed, contact us and we’ll add it.
California Notary $15,000 with $15,000 E&0
Required by notaries it protects the public against financial loss
California Underwritten Title Company $100,000
Required by title companies that engage in escrow business or act as escrow agents
California Contractor License Bond ($15,000)
Licensing bond required by the CSLB to operate a contracting business
California Residential Mortgage Lender and Servicer $50,000
Required by the Dept of Business Oversight of residential mortgage lenders and servicers
California LLC Employee - Worker Bond ($100,000)
Protect workers from any issues concerning pay and benefits
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California Instant Surety Bonds

How to Get a Surety Bond in California
Your Guide to Surety Bonds in California
What is a surety bond? How does a surety bond work?
It’s a type of contract that safeguards another party from financial loss. In the case of surety bonds, there are three parties:- Principal (the person or business which needs to secure their liability)
- Surety (a third party, often an insurance company, who agrees to assume responsibility for the debt and acts as guarantor)
- Obligee (the person or business for whom the surety bond is being issued)
1) Principal’s ability to perform a service and or repay a debt if necessary 2) Surety’s obligation should they become financially liable because the Principal fails to meet their obligations under the contract
The important thing about surety bonds is that all Principals and the approved Surety insurance company in California act as guarantors; however, the Surety will be responsible for payment due to defaults on contractual agreements under the bond. The bond allows the surety company to seek repayment from the Principal if a claim is valid.What is a surety bond used for?
Whats a surety bond you ask? Well, it guarantees an agreement between three parties by securing the obligation in that it is used to: – To secure performance on contracts; – Guarantee compliance with contract specifications and standards; – A warranty against defective products; – Secure licensed professionals such as mortgage brokersWhen do you need a surety bond?
Surety bonds are a form of performance security or financial guarantee issued by an insurance company. They are required for a variety of financial transactions, from government procurements to import and export. In the United States, bonds have been used since 1749 to guarantee that a party will fulfill its obligations under a contract or agreement. California bonds work as an integral part of any business’s success in California – just ask anyone who has ever missed a deadline! Typically a transaction, contract, or professional licensing requirement will indicate if a performance bond, payment bond, contract bond, license and permit bonds, or another type of bond is needed.What are the most popular surety bonds in CA?
California has many industries that require contract surety bonds, license bonds or permit bonds. The most common type of surety bond California is commercial surety bonds. Commercial business contracts require these kinds of surety bonds to ensure that the client receives their end of a product or service as expected. In addition, some professions such as realtors need this kind of bond before they can practice within California. Professionals who work with children regularly may also be required to get licensed from the state board and post a license fee. This is where a school district employee license & permit bond comes into play – it helps protect the public against faulty goods/services while guaranteeing quality and safety.What are contract bonds?
A large category of California bond is called contractor bonds, or bonds specific to the construction industry. CA contractor surety bonds are one of the largest markets on the planet! Contractor surety bonds more commonly are performance bonds, bid bonds, and payment bonds. Construction bonds account for approximately 70% of all bonds written in the USA. Required by residential and commercial contractors both big and small, general and across specialty trades. California surety bonding requirements vary by municipality and ensures protection of the public and consumers via performance bonds for public projects and various trade bonds such as the California Contractor License Bond.Can I get a surety bond online?
Yes. At Simpli Surety, we have 1000’s of instant issue surety bonds available to our clients on-demand at low surety bond rates. Our surety bond experts are here to help.How much does a Surety Bond cost?
If you are looking for surety bond cost, the good news is that it’s not as expensive as most people think. Across the industry, Surety bond costs can range depending on the type and terms of the bond. The fee is calculated, also called the surety bond premium, as a percent of the total coverage needed or bond amount, usually ranging anywhere from 1% to 3%. For instance, straightforward license and permit bonds tend to fall on the lower end of the spectrum even below 1%. While a more complex performance bond for a large construction project that carries a higher risk and bond amount, therefore, the surety bond cost can range higher between 1.5% to 2.5% on average.
Surety bond costs could be higher or lower depending on your surety company, the type of work you are doing, and other factors. If you need help determining how much a surety bond will cost for your specific situation, use our search to find the instant issue bonds you need, and often the surety bond cost and bond amount are listed on the application.
At Simpli Surety, we have 1000’s of instant issue surety bonds available to our clients on-demand at a low surety bond rate. The application and approval process is completed quickly, so you can get back to your business.
On the rare occasion, your bond application requires additional underwriting, our surety bond agents with over 40 years of experience will step in to help.
How to Obtain a Bond in California
Types of Surety Bonds in California - State
In California many industries and professions that require licensing or the proprietor to register their business with a state commission or regulatory body require a surety bond, including:
- California Motor Vehicle Dealer Bonds – Californians are no strangers to traffic. Used car, motorcycle and ATV dealers must secure a auto dealer bond as a part of the licensing process to ensure they are capable of and can maintain ethical business standards. Coverage $10,000 to $50,000. Buy Now
- California Motor Vehicle Ownership Surety Bond – also referred to as a Defective Title Bond of Certificate of Title Bond, enables a prospective owner to own and legally register the vehicle when legal title to prove ownership is unavailable. Buy Now
- California Mortgage Broker Bond – California Finance Lenders Law compliance requires the mortgage brokerages to secure and file this with the Commissioner of Business Oversight of the State of California on behalf of all employed mortgage lending officers. Coverage $25,000 to $200,000 based on origination volume. Buy Now
- California Insurance Broker Bonds – a state prerequisite to becoming an insurance broker, it protects clients from fraudulent activity and premium collection while ensuring sensitive financial information remains confidential and under proper use in working with financial institutions. Coverage $2,000 to $20,000 based on type. Buy Now
- California Tax Preparer Surety Bonds – or CTEC bond, this holds the tax preparer accountable for upholding ethical business standards protecting clients from financial loss due to poor financial decisions, practice, damages, or failure to comply with state or municipal laws. It assures them and the public of the company’s financial standing in the event of insolvency. Required by the State of California Franchise Tax Board to become a California Registered Tax Preparer. Coverage $2,000. Buy Now
- California Talent Agency Bond – a professional licensing related bond, this protects actors, models, producers, writers, athletes, musicians to nearly any professional creative with talent representation. The bond ensures the agency and its representatives uphold ethical standards and professional best practices in working with talent. Coverage $50,000. Buy Now
- California Immigration Consultant Bond – this bond ensures consultants uphold professional ethics and standard protecting clients from false statements, unwarranted guarantees, claims of special circumstance or favorable treatment from governmental agencies and any unlawful practice. By posting this bond consultants pledge to practice professionally in accordance with Chapter 19.5, Division 8 of the Business and Professions Code of the State of California. Coverage $100,000. Buy Now
- California Credit Services Organization Bond – for credit repair services, this bond ensures all sums due to an individual or group will be paid, and that damages which result from unlawful acts by the organization, or its employees are paid. It guarantees compliance with the California Credit Services Act of 1984. Coverage $100,000. Buy Now
- California Notary Bond – pledgers a notary will perform his or her duties required by the state in accordance with ethical standards and in compliance with state laws. The bond ensures client protection and credibility to the notary. Coverage $15,000 + E&O Buy Now
For all California Surety Bonds and Federal Bonds, use the search atop this page or Click for More Bonds below.
Types of Surety Bonds in California - Federal
- Freight Broker Bonds – often referred to as BMC-84 bonds, are a Federal as opposed to state mandate made by the Federal Motor Carrier Safety Commission to conduct business as transportation brokers. Coverage to $75,000. Buy Now
- Durable Medical Equipment Provider Bonds – often referred to as DMEPOS bonds are required of suppliers of prosthetics, orthotics, and durable medical equipment. A federal mandate per the Centers for Medicare and Medicaid Services to mitigate Medicate billing fraud. Min bond requirement of $50,000 per National Provider Identifier needing Medicate billing authorization. Buy Now
- Performance Bonds – this bond covers general performance obligations related to a contract but most often ensures the satisfactory completion of performance by a contractor. The bond penalty is tied to contract value and can be mandated at federal, state, or municipal levels. Buy Now
- Bid Bonds – a construction bond that protects the developer or project owner of a construction project during the bidding process. It guarantees them that if the bidder can or will not honor the terms of the bid, the owner will be compensated. Bid bonds are commonly required on projects that also involve performance bids and payment bonds. Buy Now
- Payment Bonds – these surety bonds are often paired with performance bonds ensuring prompt payment to suppliers and subcontractors on the project. This signals to the owner, supplier, and sub that the contractor will be compliant in working with them to completion and paying on time. Buy Now
For all Federal and California Surety Bonds, use the search atop this page or Click for More Bonds below.
Surety Bond FAQ
What is a surety bond?
A surety bond is an agreement between 3 parties, the principal applying for the bond, the Obligee who benefits from the bond and the Surety, the provider of the bond. A licensed surety agency like Simpli Surety is required to act on behalf of the 3 parties to facilitate the bond issuance.
The bond itself ensures the principal will carry out its obligations to the Obligee that acquires their services, in accordance with the conditions of a contract.
The surety company steps in to financially back the Obligee in the event the principal defaults, violates terms or fails to fulfill its obligation. If the surety pays a claim, it seeks reimbursement from the principal.
How do I get a bond?
At Simpli Surety, we’ve taken the sometimes antiquated surety bonding process and made it…well…simple. What takes many brokers and online agencies days, we’ve automated to get your bond fast. From search to submission to getting a bond in your inbox in less time than finishing a cup of coffee.
- 1) Use our Search tool to find your bond.
- 2) Enter the key information and click submit.
- 3) A decision is rendered within minutes.
- If approved, you’ll be sent a payment link and documents to sign electronically. If not approved, our underwriters will alert you of next steps. Sometimes we just need a few more pieces of info to complete the analysis but in most cases, its automated and effortless.
- Your bonds are emailed to your and the Obligee. It’s that fast…and simple.
Why Simpli Surety?
Simpli Surety is a licensed surety bond agency. Our bond professionals have been in the industry for over 40 years. Most online surety bond agencies only provide a quote range, then needing to shop various surety carriers for the bond. This makes the surety bonding process longer and tedious.
Simpli Surety requires basic underwriting information and as soon as you click submit, in most cases we render a decision right away. If approved, simply purchase with a credit card and you’ll have your bond emailed to you and the obligee (beneficiary or regulatory authority) in minutes.
Our instant issue rates are the most competitive in the business. And for more complex bonding situations, our experts will step in and provide a bespoke solution.
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Click here for our information center to learn more, or link to more FAQs.

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