What the California Lumber Liquidators Inc Installation Provider Bond is for
The state, city or county usually requires this bond before it licenses or registers a contractor. It protects customers and the public if the contractor breaks the licensing rules.
The bond amount is set by the agency, utility or fund that asks for it. If the bond holder doesn't meet their obligations, a valid claim is paid up to that amount, and the bond holder repays the surety.
What the price depends on
The starting rate. A credit check and an underwriter's review set your final price, and you see it before you pay.