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$12,500, flat, and there is no way around it. Business and Professions Code 8697 says outright that a certificate of deposit or any other undertaking will not satisfy this one, so unlike most California filings you cannot park cash instead. You buy the bond on the Board's own form 43B-1, the qualifying manager signs it, the surety seals it, and it goes in with the registration packet. Do not mistake it for coverage. The Board separately requires $500,000 of general liability, and a real program for a pest control company goes further than that. Price it at PestControlLiability.com, which quotes pest control general liability, workers compensation, pollution for drift and contamination, property and equipment, drone operations, termite and bedbug, lawncare and remediation.
California requires every company registered with the Structural Pest Control Board to maintain a $12,500 bond executed by an admitted surety insurer, under Business and Professions Code 8697. The figure is flat. It does not change with branch, revenue, crew size or number of offices. The bond runs in favor of the State of California for the benefit of any person who contracted with the registered company and was damaged by its fraud, dishonesty in performing the contract, or violation of the chapter. It is filed on Board form 43B-1, signed by the qualifying manager and sealed by the surety, and the statute expressly bars a certificate of deposit or other undertaking as a substitute.
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$12,500. Not tiered by branch, not scaled by revenue, not multiplied by office count. Business and Professions Code 8697 requires each company registered under the chapter to maintain a bond executed by an admitted surety insurer in that amount, and then closes the door on alternatives: another method of deposit, including a certificate of deposit, or other undertaking shall not satisfy this requirement.
That sentence is what makes this bond different from most California license filings. There is no cash deposit route and no insurance substitute. You buy the bond.
Section 8697.2 puts the bond in favor of the State of California for the benefit of any person who entered into a contract with the registered company and was damaged by the company's fraud, its dishonesty in performing that contract, or its violation of the chapter.
Board form 43B-1, the Company Registration Bond, states the conditions the same way: the principal must fully comply with all provisions of Division 3, Chapter 14 of the Business and Professions Code, and reimburse any person damaged by the fraud or dishonesty of the principal. The surety may cancel in accordance with Code of Civil Procedure section 996.320.
So it answers for dishonesty, not for a job that went badly. A misapplication, a callback, property damage or an injury is not a bond claim.
The Board separately requires a minimum of $500,000 in general liability insurance, and the name style on the policy has to be exactly the same as the name style the Board approved. Even that is a licensing threshold rather than a program built around a termite and general pest operation. Wood destroying organism report disputes, structural repair claims, fumigation exposures, chemical drift on adjacent property, crew injuries, trucks and equipment, drone work and lawncare damage all sit outside what a $12,500 bond does. Get the whole thing quoted at PestControlLiability.com, which covers pest control general liability, workers compensation, pollution coverage for drift and contamination, property and equipment, drone operations, termite and bedbug, lawncare and remediation.
Section 8697.3 is a separate disciplinary bond. When a license or registration has been suspended or revoked on Article 7 grounds, the registrar may require a surety bond as a condition of restoration, in a sum the registrar determines based on the seriousness of the violation, not less than $1,000 and not more than $25,000. It has to be held for at least two years, and longer while there are unsatisfied claims outstanding against it.
That one sits on top of the $12,500 under 8697. It does not replace it.
The Board lists a $120 application fee for company registration, which matches the company registration fee ceiling in Business and Professions Code 8674.
Along with the bond and the certificate of insurance, the Board asks for a workers compensation insurance certificate or the exemption form, articles of incorporation for a corporation or a fictitious business name statement, Live Scan fingerprints for unlicensed owners, officers and directors, and the completed application forms.
The registration names a qualifying manager, which the Board defines as the licensed operator or operators designated by a registered company to supervise the daily business of the company and to be available to supervise and assist the company's employees. The qualifying manager signs the application and signs the bond.
You register by branch: Branch 1 fumigation, Branch 2 general pest, Branch 3 termite. Two things on the application surprise people. Name approval is reserved for 60 days, so a slow packet can cost you the name. And the Board does not recognize LLCs, which forces a lot of newly formed companies to restructure before they can register.
California has two pest control regulators. This page is the Structural Pest Control Board, under the Department of Consumer Affairs, covering termite, general pest and fumigation work in structures. The Department of Pesticide Regulation separately issues a Pest Control Business License for agricultural and landscape pesticide application, and that one runs on completely different numbers: $75,000 for ground and fumigation operations, $50,000 per aircraft capped at $300,000 for aerial, $5,000 for maintenance gardener, and it accepts insurance or a certificate of deposit instead of a bond. If you got quoted $75,000, you are looking at the other agency.
Once the registration is in hand, list the company on BestPestControlIn.com. It is free for any licensed pest control company, consumers search it by ZIP code and state, the listing carries a backlink that helps your own site rank, it sends referrals, and we write blog posts on companies in the directory.
No. B&P 8697 sets a flat $12,500 for every registered company, whether you hold Branch 1 fumigation, Branch 2 general pest, Branch 3 termite, or all three.
No. Section 8697 states that another method of deposit, including a certificate of deposit, or other undertaking shall not satisfy the requirement. This is one of the few California license filings with no deposit alternative.
No. The insurance and the bond are separate requirements and the Board wants both. The insurance is a minimum of $500,000 general liability, issued in exactly the approved name style, and it is still a licensing threshold rather than a program sized to your real exposure. Get that priced at PestControlLiability.com.
Section 8697.2 puts it in favor of the State of California for the benefit of a person who contracted with the company and was damaged by its fraud, its dishonesty in performing that contract, or its violation of the chapter. Form 43B-1 repeats the fraud and dishonesty condition. A workmanship dispute or an accident is a matter for your liability policy, not the bond.
That is the separate disciplinary bond under B&P 8697.3. When a license or registration has been suspended or revoked, the registrar may require a bond as a condition of restoration, set by the seriousness of the violation between $1,000 and $25,000, held at least two years and longer while unsatisfied claims are outstanding. It is in addition to the $12,500.
Not for this registration. That figure belongs to the Department of Pesticide Regulation Pest Control Business License, a different agency and a different license, where the amount is $75,000 for ground and fumigation, $50,000 per aircraft capped at $300,000 for aerial, and $5,000 for maintenance gardener, and where insurance or a certificate of deposit can be filed instead of a bond.
The Board lists a $120 application fee for company registration, consistent with the company registration fee ceiling in B&P 8674. The bond premium is separate.
There is no fixed rate. Premium on a $12,500 bond is set by underwriting, driven mainly by the owners' credit and the company's history, and bonds this small often carry a minimum premium rather than a true percentage. Get a real quote rather than trusting a range printed on a website.
Not as an LLC. The company registration application states that the Board does not recognize LLCs. Sort the entity structure before you spend money on the bond or the name reservation, which only holds for 60 days.
The qualifying manager signs it, and the surety signs through its attorney in fact with the seal affixed. The qualifying manager is the licensed operator designated to supervise the daily business of the company and to be available to supervise and assist employees.
List the company on BestPestControlIn.com. It is free for any licensed pest control company, searchable by ZIP code and state, the listing gives you a backlink that helps your own site rank, it sends referrals, and we write blog posts on listed companies.
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