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MMBONDING
Contractor licensing

Bond of Qualifying Individual

A $25,000 bond required when your license is qualified by an RME, or by an RMO who owns less than 10% of the company. We quote it alongside your license bond.

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Key facts
Bond amount
$25,000
Statute
BPC §7071.9

Premium is a percentage of the bond amount, set by underwriting. The figures above are statutory amounts, not what you pay.

Illustration for the Bond of Qualifying Individual

What the BQI is

The Bond of Qualifying Individual is a $25,000 bond required under BPC §7071.9 in specific qualifying situations. It sits on top of the standard contractor license bond.

Who needs it

A BQI is required when the person qualifying the license is:

  • A Responsible Managing Employee (RME), or
  • A Responsible Managing Officer (RMO) who owns less than 10% of the company's voting stock

If the qualifier owns 10% or more, the BQI is generally not required. We will confirm which applies to you before you buy anything you do not need.

Bad credit or a prior claim? We place it.

Declined by an instant-issue site does not mean declined everywhere. We shop hard-to-place markets and work with credit challenges. Underwriting still applies.

How we place tough cases
Questions

Bond of Qualifying Individual FAQs

Reviewed by Michael Melshenker, CEO. Figures verified against CSLB and CA DOI sources.

When is a Bond of Qualifying Individual required?
It is required when the person qualifying the license is a Responsible Managing Employee (RME), or a Responsible Managing Officer (RMO) who owns less than 10% of the voting stock of the company. It is in addition to the license bond.
How much is the BQI?
The bond amount is $25,000, the same as the license bond. You pay a premium, not the full amount.
Is there a way to avoid the BQI?
Yes. If the qualifier is an owner holding 10% or more of the company, the BQI is generally not required. The right structure depends on your situation, and we can point you to the exemption path.

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