Last updated: August 28th, 2026
Insurance requirements for California contractors depend on your business structure, employees, and license classification.
Commercial general liability insurance is not required for every California contractor license, although it can provide important protection against third-party bodily injury and property damage claims.
California contractor LLCs are an exception. CSLB requires LLC licensees to maintain liability insurance of at least $1 million, with the required amount increasing based on the number of personnel listed on the license, up to $5 million.
California contractors generally must carry workers’ compensation insurance when they have employees.
In addition, contractors holding any of these classifications must maintain workers’ compensation coverage or approved self-insurance even if they have no employees:
Contractors who have no employees and do not fall into one of these classifications may currently qualify to file a workers’ compensation exemption with CSLB.
Under current California law, all licensed contractors are scheduled to be required to maintain workers’ compensation insurance beginning January 1, 2028, regardless of whether they have employees, with a limited exception for qualifying joint ventures.
The License Guru can help you obtain a no-obligation quote for general liability or workers’ compensation insurance.
