A homeowner assumes the contractor's CSLB license bond will pay every defective-work claim and complete the project. Does the bond provide that blanket protection?
- No; the bond covers defined claims only
- BYes, it pays every loss without limit
- CYes, it is workers’ compensation
- DNo, because licensed contractors need no bond
Why A is correct
The best answer is: No; the bond covers defined claims only. Bonds and insurance have different obligees, conditions, limits, and claim processes. The contractor must understand each required or contractual risk-transfer instrument separately. The new fact pattern changes the setting, not the governing rule or management control. The other choices either skip a required step, apply a different rule, or fail to address the stated risk.