State requirements
California contractors are licensed by Contractors State License Board (CSLB). General liability is not required by statute to hold the license, but contracts and leases require it in practice. Workers compensation is required for employers with any employees. 1+ employees; sole proprietors with no employees may file an exemption.
| Licensing authority | Contractors State License Board (CSLB) |
|---|---|
| General liability required for license | No |
| Statutory GL minimum | No state minimum verified |
| Workers compensation | Required, any employees |
| Contractor license bond | $25,000 |
Verified against https://www.cslb.ca.gov/ in the October 2026 research pass. Where a figure is not stated, no authoritative source published one, and we say so rather than estimating.
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Contractors State License Board (CSLB)
CSLB requires a license for any project of $500 or more in combined labor and materials, and licenses 44 classifications. CSLB requires workers' compensation coverage or a filed exemption certificate but does not require general liability insurance to obtain a license; the contractor's bond is $25,000 (Bus. & Prof. Code 7071.6).
No statutory minimum applies in California. What you actually need is set by the contract in front of you. Most California general contractors require one million per occurrence and two million aggregate from their subcontractors, plus additional insured status and a waiver of subrogation.
Workers compensation is required for employers with any employees. 1+ employees; sole proprietors with no employees may file an exemption. Operating without it where it is required exposes the business to penalties and to direct liability for an injured worker's medical costs.
Any vehicle used for business needs commercial auto. A personal policy excludes business use in every state, and it will not cover the tools inside the truck.
General liability never covers your own tools. Inland marine covers them in transit and on site, including theft, which is the most common loss contractors actually file.
Workers compensation is required for employers with any employees. 1+ employees; sole proprietors with no employees may file an exemption.
Workers compensation covers medical costs and lost wages for a work-related injury or illness. It is separate from general liability, which covers injury to other people. If an employee is hurt on a job site in California, that is a workers compensation claim, and general liability will not respond to it.
California requires a contractor license bond of $25,000. A license bond protects the consumer if you fail to complete the work or violate licensing law. It is not insurance and it does not pay a claim made against you, which is why contractors carry both.
Beyond the license bond, bid bonds and performance bonds come up on larger and public work. Bid bonds are typically priced as a percentage of the bid amount rather than a flat fee, so the cost scales with the project.
No. California does not mandate general liability by statute for contractor licensing. In practice you still need it, because contracts, commercial leases and most licensing applications require proof of coverage. A contract requirement is not less binding than a statute, it is just enforced by the party hiring you.
Workers compensation is required for employers with any employees. 1+ employees; sole proprietors with no employees may file an exemption.
Yes. The contractor license bond is $25,000. It protects the consumer, not you, and it does not take the place of insurance.
Contractors State License Board (CSLB).
The consequences run from losing the contract to losing the license. A general contractor who finds your certificate is not what the subcontract required will typically stop work and withhold payment until it is corrected, and an uninsured loss becomes a personal liability rather than an insurance claim.
Yes. A single policy can list every state you operate in. Pricing is driven by the highest-exposure state on the schedule, so tell us all of them rather than only your home state.
Requirements differ enough by state that it is worth checking before you bid.
Tell us your trade, payroll and what California requires of you.
