The $25,000 contractor's license bond primarily protects which of the following?
Explanation
B&P §7071.5 lists who the §7071.6 bond is for: homeowners and single-family owners damaged by a violation, anyone damaged by a willful violation or by the licensee's fraud, and employees for unpaid wages and fringe benefits. (b) is the wage-bond misconception — employees are beneficiaries, but not the only ones; the wage-and-benefit-only bond is the LLC's separate $100,000 bond under §7071.6.5. (c) imports lien practice: a preliminary notice preserves mechanics lien and stop payment notice rights, not bond claims. (d) reverses the instrument — a surety bond protects the public from the contractor, and the surety may seek indemnity back from the contractor; it is not the contractor's own liability insurance.
Law Reference: B&P Code §7071.5 / §7071.6This topic, taught in full in the CSLB Law & Business guide. CSLB Law & Business — Complete Study Guide (2026) — PDF + EPUB, $24.99 · 14-day refund →
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