Introduction to California’s $100,000 LLC/Employee Worker Bond
Hi, this is Mike with Fusco Orsini & Associates, where we provide struggle-free insurance and risk management services for busy people. We also offer lots of help with companies’ bonding programs. Now in the state of California, if you are a California contractor, you understand the need to post a $15,000 contractor bond with the CSLB to keep your license active and remain in good standing. But did you know that if you’re an LLC and you have an entity filed with the CSLB, you need to carry an additional $100,000 LLC employee worker bond? And I’m going to be back to explain that bond and let you know how we can help in just a moment. Stay tuned.
Why do I need a $100,000 bond?
California contractors are very used to buying and posting their $15,000 CSLB bond. It typically ranges from one to five years in length. The premiums are relatively inexpensive. It takes a simple credit check, and the bond company provides quick approval and manageable costs. But suppose you have an LLC or consider filing an LLC and contracting in the state of California. In that case, you also need to post an additional $100,000 LLC employee worker bond with the CSLB. Now, the purpose of the bond is to protect the LLC’s employees or workers for unpaid wages, unpaid interest on wages, unpaid fringe benefits, or other contributions. And this bond requires additional underwriting. It’s not as simple as a credit check. And the premiums typically are much higher than the $15,000 contractor license bond.
Here is how to save money!
Now, we get lots of prospects and referrals that call us that are paying relatively expensive premiums on these bonds, and we’ve been able to help them, in many cases, save up to 50% on their $100,000 LLC employee worker bond. So if you’re considering filing for an LLC in California, or if you already are and you’re paying more premium than you think is reasonable for your $100,000 LLC worker bond, give us a call here at the agency. Our phone number is 858-384-1506. You can also email me directly at firstname.lastname@example.org. We have a unique offering with a bond company that writes a lot to the LLC employee worker bonds and does so at a much better cost than I’ve seen. So give us a call. We’re happy to help.