California Contractors License Law Practice Exam 2025 - Free Contractor License Practice Questions and Study Guide

Question: 1 / 400

What is the limit of liability for a contractor license bond in California?

$10,000

$20,000

$15,000

The limit of liability for a contractor license bond in California is set at $15,000. This amount is essential as it establishes the maximum payout available under the bond in case a claim is made against the contractor. The bond serves as a financial guarantee that the contractor will adhere to state laws and regulations governing construction activities, providing a level of protection for consumers against potential damages or failures in performance by the contractor.

Understanding this limit is crucial for both contractors and clients, as it helps inform expectations regarding consumer protection and contractor accountability. Setting the limit at $15,000 aims to ensure that there is some level of recourse for consumers while balancing the financial obligations of contractors in maintaining their licensing and fulfilling bond requirements.

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$25,000

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