What should a California contractor prepare for a business insurance review?

Prepare the business name, license or trade information, employee and payroll details, operations, vehicles or equipment when relevant, contracts, prior coverage, and claims history. A licensed team member can then review the request subject to carrier eligibility, policy terms, and underwriting.

How are business insurance limits or terms selected for a contractor?

Limits and terms are not universal. They can be influenced by the contractor's actual work, contracts, employee duties, vehicle use, project requirements, prior loss history, carrier guidelines, and applicable California requirements. The appropriate structure must be reviewed for the individual operation.

Can Asena provide an exact price or guarantee coverage for this page?

No. Any indication is preliminary until complete information is reviewed. Availability, pricing, limits, effective dates, certificates, and coverage are subject to carrier eligibility, policy terms, underwriting, and written confirmation.

Insurance for New California Contractors: What to Get First

Congratulations on getting your CSLB license. Now you need insurance. Here is the exact sequence to follow in your first 30 days as a licensed California contractor.

Day 1: Get Your Contractor License Bond

Before you can legally contract in California, you need a $25,000 Contractor License Bond filed with the CSLB. If you are an LLC, you also need a $100,000 Employee/Worker Bond. These can typically be issued within the after complete information, carrier processing, and underwriting, subject to underwriting approval. Cost: pricing varies by classification, payroll, operations, claims history, limits, and underwriting/year for the standard bond.

Day 2–3: Get General Liability Insurance

Most general contractors and project owners will not hire you without a GL certificate. Get at least $1M/$2M in GL coverage. For most trades, this costs pricing varies by classification, payroll, operations, claims history, limits, and underwriting/year. You will need this to get your first job bid accepted.

Day 4–7: Get Workers' Compensation

If you have any employees (including family members), you are required by California law to carry workers' comp. If you are a sole proprietor in a Phase 1 SB 216 trade (C-8, C-20, C-22, C-39, D-49), you also need WC. If you have no employees and are not in a Phase 1 trade, you can file a WC exemption with the CSLB.

Week 2: Add Commercial Auto

If you drive any vehicle for business purposes, switch your personal auto to commercial auto. Personal auto policies exclude business use — a claim will be denied if you are driving to a job site.

Get Started Today

Call Asena Capital Insurance Services at (858) 925-9555 or get all your coverages quoted online. We specialize in new contractor insurance packages.