California CSLB Bonds

CSLB Bond of
Qualifying Individual

The $25,000 surety bond required by the California CSLB to protect the public and employees when a contractor license is qualified by an RME, or by an RMO who owns less than 10% of the company's voting stock.

Increased from $12,500 to $25,000 under SB 607. Required in addition to the standard $25,000 CSLB contractor license bond.

Get a Bond Quote (435) 272-8042
Dedicated Account Support
Independent Broker
Fast Certificate Issuance
Competitive Rates
Top Insurance Markets
Financing Available

$25,000

Required Bond Amount (SB 607)

$150–$400

Typical Annual Premium

Same Day

Bond Issuance

CSLB

Filed Directly

CSLB Requirement

What Is the Bond of Qualifying Individual?

The Bond of Qualifying Individual (BQI) is a $25,000 surety bond required by the California Contractors State License Board (CSLB) to ensure that the public and the licensee's employees are compensated for damages or unpaid wages if a contractor violates licensing laws.

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

The bond protects consumers and employees if the RME or RMO commits fraud, abandons a project, fails to pay wages, or otherwise violates contractor licensing laws while acting in their qualifying capacity.

📌

SB 607 update: Older regulations required a $12,500 limit, but all Bonds of Qualifying Individual have been increased to $25,000 following the passage of California Senate Bill 607. If you still hold a $12,500 BQI on file, contact us to upgrade to the new SB 607-compliant amount.

ℹ️

Not sure if you need this bond? If your RMO owns at least 10% of the voting stock or equity, they may apply for an exemption. 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 BQI does not replace the standard contractor 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.

💰

Credit-Based Pricing

Most qualifying individuals pay $150–$400 per year for the $25,000 bond (SB 607 amount).

⚡

Same-Day Issuance Available

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

Know the Difference

RME vs. RMO — Who Needs This Bond?

The BQI requirement applies to every RME, and to RMOs who own less than 10% of the corporate voting stock or equity.

👷

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
  • ✓ BQI always required — no exemption available for RMEs
🏢

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
  • ✓ BQI required when owning less than 10% of voting stock
  • ✓ Exemption available if owning 10%+ of voting stock or equity (must be certified)

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
Side by Side

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 $25,000 (SB 607) $150–$400/yr All RMEs + RMOs owning less than 10%

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

Simple Process

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 $25,000 Bond of Qualifying Individual (updated per SB 607) is issued — often the same business day.

04

Filed with CSLB

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

Get My Bond Quote
Common Questions

Bond of Qualifying Individual FAQ

What is a CSLB Bond of Qualifying Individual?
The Bond of Qualifying Individual (BQI) is a $25,000 surety bond required by the California Contractors State License Board (CSLB) to ensure the public and employees are compensated for damages or unpaid wages if a contractor violates licensing laws. It is filed in the name of the qualifying individual (the RME or RMO) and is separate from — and in addition to — the standard $25,000 contractor license bond filed in the company's name.
Did the Bond of Qualifying Individual amount change?
Yes. Under California Senate Bill 607 (SB 607), all Bonds of Qualifying Individual were increased from $12,500 to $25,000. Every active BQI on file with the CSLB must reflect the updated $25,000 amount. If you have an older $12,500 bond, contact us to update it to the new SB 607-compliant amount.
Who is required to file a Bond of Qualifying Individual?
The BQI is required when your California contractor license is qualified by (1) a Responsible Managing Employee (RME), or (2) a Responsible Managing Officer (RMO) who owns less than 10% of the voting stock of the corporation. In both cases the qualifier does not have sufficient ownership stake, so the state requires the additional bond to protect the public and the company's employees.
Who is exempt from filing the Bond of Qualifying Individual?
RMOs who own at least 10% or more of the corporate voting stock or equity may apply for an exemption from the BQI requirement. The exemption is not automatic — the qualifier must certify the ownership level to the CSLB. RMEs are never eligible for the exemption (an RME is by definition an employee, not an owner). If you believe you qualify for the exemption, contact us and we can walk you through the certification process.
How much does the $25,000 Bond of Qualifying Individual cost?
The required bond amount is $25,000. The annual premium — what you actually pay — typically ranges from $150 to $400 per year depending on the qualifying individual's credit history and the surety company used. Applicants with strong credit pay toward the lower end of that range.
Is the BQI in addition to the standard $25,000 contractor license bond?
Yes. The BQI is a completely separate requirement from the standard $25,000 CSLB contractor license bond. When required, a company must maintain both bonds simultaneously — the $25,000 license bond in the company's name and the $25,000 Bond of Qualifying Individual in the RME or RMO's name. Both are now equal in amount following SB 607.
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 an appropriate Bond of Qualifying Individual is filed (unless the new qualifier owns 10%+ and applies for the exemption). 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.

Get a Bond Quote (435) 272-8042

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.

Get a Quote Call (435) 272-8042
Call Now