California contractors insurance

Licensing & registration in California

Contractors performing work at or above the state’s dollar threshold generally must be licensed by the Contractors State License Board (CSLB), classified by trade. Workers compensation is required once you have employees, and certain classifications (such as roofers) face additional requirements. Confirm current rules with the CSLB.

A contractor license bond is generally required to hold a CSLB license, and additional bonds can apply (for example, a bond of qualifying individual). The bond protects the public and is separate from your liability insurance.

Coverages California contractors carry

• •General liability — generally intended to respond to third-party injury and property damage from your work, including completed-operations claims that surface after a job.
• •Workers’ compensation — required in most states once you have employees, and commonly required of subs by the GCs who hire them.
• •License / registration bond — a guarantee to the public required by many licensing bodies; distinct from your liability insurance.
• •Tools & equipment (inland marine) — optional coverage generally intended to address loss or damage to your own gear.
• •Commercial auto — for work trucks and vans; personal auto typically excludes business use.

Who needs it in California

Common California users include general building (B) and specialty (C-) contractors — roofers, electricians, plumbers, HVAC, landscapers, and solar installers — across Los Angeles, San Diego, San Jose, Sacramento, and the Bay Area.