Contractor Insurance for California
California has 280,000+ licensed contractors, the most aggressive workers' comp enforcement in the country, and regulatory requirements that trip up even experienced builders. From CSLB license bonds to AB 5 classification audits to 10-year completed operations exposure under SB 800, getting your coverage wrong in this state can shut you down.
We started in the California trades. We know what CSLB expects, what GCs demand in their subcontract agreements, and what happens when a payroll auditor shows up asking questions about your 1099 workforce. This page covers every coverage line California contractors need, with links to detailed regional and service-specific guides.
California Regulatory Landscape
California's regulatory framework for contractors is among the most complex in the nation. Understanding these requirements is not optional. Non-compliance creates licensing, financial, and legal exposure.
CSLB Licensing & Bond Requirements
The Contractors State License Board governs all contractors performing work totaling $500 or more in labor and materials. Every licensee must maintain a $25,000 license bond (B&P §7071.6) and may need an additional $12,500 qualifier bond if the qualifying individual is not a majority owner. Operating without an active CSLB license is a misdemeanor with fines up to $15,000 and potential imprisonment.
Workers' Compensation — No Exceptions
California Labor Code §3700 mandates workers' comp for every employer with one or more employees, including part-time, seasonal, and family members receiving wages. AB 5 (codifying Dynamex) applies the ABC test for worker classification. Misclassification triggers back-premium assessments, EDD penalties, and uninsured employer liability. Cal/OSHA actively audits job sites and issues stop-work orders for non-compliance.
General Liability & SB 800 Exposure
While CSLB does not mandate GL by statute, virtually every commercial contract and public works bid requires $1M/$2M minimum limits. California's SB 800 Right-to-Repair Act creates a 10-year statute of repose for latent defects on residential projects. CCP §337.15 extends this exposure window, meaning claims from completed work can surface years after your crew left the site.
Public Works & Prevailing Wage
California's prevailing wage requirements (Labor Code §1720) apply to all public works projects. Contractors must register with DIR, submit certified payroll, and maintain workers' comp coverage meeting DIR requirements. Public works over $5,000 require bid bonds (PCC §20170), and performance and payment bonds are mandatory under Civil Code §9550. Non-compliant contractors are barred from bidding.
Coverage Lines for California Contractors
Every coverage line a California contractor needs, structured around CSLB requirements, contractual demands, and the real risks you face on job sites from San Diego to Sacramento.
Why California Contractors Choose Us
We built this agency from California construction experience. Ten years in the trades before transitioning into insurance means we understand CSLB compliance, payroll audits, and job site risk from the contractor's perspective.
- CSLB licensing requires specific bond amounts, insurance documentation, and qualifier bonds that vary by classification. We handle every CSLB compliance requirement for initial licensing, reclassification, and renewal.
- California's AB 5 worker classification law creates unique workers' comp exposure. Misclassifying employees as independent contractors triggers back-premium audits, EDD penalties, and uninsured employer liability for injuries.
- SB 800 and CCP §337.15 create up to 10 years of completed operations exposure on residential and commercial projects. Your GL policy must carry adequate products-completed operations limits for this long-tail risk.
- Additional insured requirements in California are among the most complex nationally. GCs demand CG 20 10, CG 20 37, primary and noncontributory language, and waiver of subrogation endorsements that standard policies may not include.
- Prevailing wage projects require DIR registration, certified payroll, and workers' comp coverage that meets DIR audit standards. We structure programs that satisfy these requirements from day one.
- Wildfire, earthquake, and flood exposures on California job sites require builder's risk policies with endorsements that many carriers exclude or price prohibitively. We access specialty markets for these risks.
California License & Credentials
Construction Pros Insurance Services is a DBA of OIGCP Inc.
Regional Coverage Hubs
California's construction market varies dramatically by region. Each metro area has different regulatory requirements, project types, and risk exposures. We provide localized expertise for every major California market.
Los Angeles Metro
Los Angeles, Long Beach, Glendale, Pasadena, Pomona
Entertainment industry compliance, port construction, seismic retrofit requirements, Metro rail expansion
San Francisco Bay Area
San Francisco, Oakland, San Jose, Fremont, Berkeley
BART/SFMTA pre-qualification, tech campus infrastructure, biotech lab requirements, seismic retrofit
Orange County
Aliso Viejo, Irvine, Anaheim, Santa Ana, Huntington Beach
Agency headquarters, residential development, commercial TI, hospitality construction
San Diego & Inland Empire
San Diego, Riverside, San Bernardino, Temecula, Oceanside
Military base construction, cross-border logistics, warehouse development, wildfire zone compliance
BUILT BY A CONTRACTOR
I started my career in construction here in California, working in the trades for ten years before building and operating a chain of health clubs. When my wife Danielle and I had our first daughter, I chose to transition into insurance so I could build a business rooted in integrity while still putting family first.
Today, Construction Pros Insurance Services focuses exclusively on contractor insurance. Having worked on California job sites myself, I understand CSLB requirements, subcontractor exposure, payroll audits, and the real risks contractors face every day.
My faith in Jesus Christ and my commitment to family shape how we serve our clients. Contractors work hard for what they build. Our job is to protect it.
California Contractor Insurance FAQ
What insurance do California contractors need?
At minimum, California contractors need a $25,000 CSLB license bond, workers' compensation insurance (mandatory under LC §3700 for any employer), and general liability insurance (required by virtually all contracts). Most contractors also need commercial auto, builder's risk, and an umbrella policy. Public works contractors need bid bonds, performance bonds, and payment bonds. The specific requirements depend on your CSLB classification, the types of projects you pursue, and the contractual insurance requirements imposed by GCs and project owners.
How much does contractor insurance cost in California?
Costs vary significantly by trade, payroll, revenue, claims history, and coverage limits. General liability for a residential contractor typically runs $2,000 to $8,000 annually for $1M/$2M limits. Workers' comp premiums depend on your classification code and EMR. Roofing (class code 5551) can exceed $30 per $100 of payroll, while office staff is under $1. Surety bonds are 1-5% of the bond amount. We quote multiple carriers to find the most competitive program for your specific situation.
Does CSLB require general liability insurance?
CSLB does not mandate GL by statute. However, virtually every commercial contract, GC subcontract agreement, and public works bid specification requires general liability at $1M per occurrence and $2M aggregate as a minimum. Larger projects and government work frequently require $5M or more through umbrella policies. Operating without GL effectively locks you out of professional contracting work in California.
What is the California contractor license bond?
The CSLB license bond is a $25,000 surety bond required under Business & Professions Code §7071.6 for every active contractor license. It protects consumers against contractor violations including fraud, abandonment, willful departure from plans, and failure to pay subcontractors. The bond must remain active for the life of your license. If the qualifying individual on your license is not a majority owner, you also need a $12,500 qualifier bond.
Is workers' compensation required for all California contractors?
Yes. California Labor Code §3700 requires workers' comp for every employer with one or more employees, with no small employer exemption. This includes part-time, seasonal, and family members receiving wages. Sole proprietors and partners can exempt themselves but no one else. Penalties for non-compliance include stop-work orders, fines up to $100,000, and misdemeanor criminal charges. Most GC subcontract agreements require workers' comp regardless of employee count.
What bonds do California public works contractors need?
California public works contractors need three types of bonds: bid bonds (typically 10% of the bid amount, required on projects over $5,000 under PCC §20170), performance bonds (100% of contract value guaranteeing project completion), and payment bonds (100% of contract value guaranteeing subcontractor and supplier payment under Civil Code §9550). Contractors must also be registered with DIR and comply with prevailing wage requirements.
How does AB 5 affect contractor insurance in California?
AB 5 codified the strict ABC test for worker classification. Most construction workers default to employee status unless all three prongs are met. This means contractors who use workers as independent contractors face significant risk of reclassification. The insurance impact is substantial: reclassified workers must be covered under workers' comp, creating potential back-premium assessments, EDD penalties, and uninsured employer liability for any injuries during the misclassification period.
Ready to Get California Covered?
Whether you need a CSLB license bond to get started, workers' comp to keep your crew legal, or a full insurance program to bid public works, we structure coverage that meets California requirements and protects your business. No generic quotes. No call centers. Just a former contractor who understands what you are building.
Construction Pros Insurance Services is a DBA of OIGCP Inc. California License #0J16088.