How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Attorney2020 Your Own Question
Attorney2020, Attorney
Category: Business Law
Satisfied Customers: 2579
Experience:  I am a practicing attorney. I have experience in business law, bankruptcy, real estate law and estates.
Type Your Business Law Question Here...
Attorney2020 is online now
A new question is answered every 9 seconds

This question regards XXXXX XXXXX I am a licensed contractor

This answer was rated:

This question regards XXXXX XXXXX I am a licensed contractor in California. I have a license bond which is required by the license board. It is illegal in California to advertise that you are "bonded" if you only have a license bond, but I see that in ads all the time - "licensed and bonded." I thought surety bonds were for individual jobs. So, if a customer wanted me to be bonded, I would get a bond that would be for their job only. I am filling out an application to do some work for a home improvement store. The application asks if I have a surety bond. Is it possible to get a surety bond that is not tied to a specific job?

Attorney2020 :

No. Generally,there are four types of surety bonds:

  1. Bid Bond: Ensures the bidder on a contract will enter into the contract and furnish the required payment and performance bonds if awarded the contract.

  2. Payment Bond: Ensures suppliers and subcontractors are paid for work performed under the contract.

  3. Performance Bond: Ensures the contract will be completed in accordance with the terms and conditions of the contract.

  4. Ancillary Bond: Ensures requirements integral to the contract, but not directly performance related, are performed.


So, when someone advertises that they are licensed and bonded, they are not telling the truth?

Attorney2020 :

The term "licensed and bonded" simply means that the contractor is licensed by the state and the term bonded means that the contractor has a bond with either a bank or insurance company that would cover jobs to a specific amount. Additionally bonds may be required if the contractor's general bond amount is lower than what is necessary for a particular job.

Attorney2020 :

So to answer your question, a general bond can be acquired through a bank or insurance company. It is simply a set aside savings account opened up by the contractor that covers the contractor for a certain amount of liability. I hope this helps. Surety bonds are separate from general bonds.

Attorney2020 :

Please rate my answer. Please let me know if you need any additional information.

Attorney2020 and other Business Law Specialists are ready to help you