Verified insurance requirements for general contractors operating in California.
California does not require GL insurance by state law, but the CSLB effectively requires it because most project owners and general contractors require it contractually. The CSLB recommends $1,000,000 minimum.
Minimum Coverage
$500,000 - $1,000,000
Estimated Annual Cost
$500 - $2,000/year
California requires workers' compensation insurance for ALL employers with one or more employees — zero exceptions for construction (California Labor Code Section 3700). This is strictly enforced. Operating without WC in California is a criminal offense.
Minimum Coverage
Statutory limits
Estimated Annual Cost
$1,000 - $5,000/year
The California Contractors State License Board (CSLB) requires a $25,000 contractor license bond (California Business and Professions Code Section 7071.6). This is MANDATORY for all licensed contractors. Additionally, a $15,000 bond of qualifying individual is required.
Minimum Coverage
$25,000
Estimated Annual Cost
$100 - $500/year
Required for business vehicles. California auto minimums: 15/30/5 ($15K per person, $30K per accident bodily injury, $5K property damage).
Minimum Coverage
15/30/5 ($15K per person, $30K per accident bodily injury, $5K property damage)
Estimated Annual Cost
$1,200 - $3,000/year
Provides additional coverage beyond your general liability and auto policy limits. Recommended for larger projects.
Minimum Coverage
$1,000,000+
Estimated Annual Cost
$300 - $1,000/year
$2,800 - $10,000/year
Varies based on your revenue, number of employees, claims history, and specific coverage limits.
Insurance requirements and costs vary by insurer, your business specifics, and local regulations. Always consult with a licensed insurance agent for quotes specific to your situation. This guide is informational only.