CSLB Insurance Requirements for California Contractors (2026)

If you hold a California contractor's license, the Contractors State License Board (CSLB) has specific insurance requirements you must meet to keep your license active. Here's what you need to know.

Workers' Compensation Insurance

If you have any employees — even one — California law requires you to carry workers' compensation insurance. This is a CSLB requirement for license renewal. You must either provide proof of coverage or file a workers' comp exemption (if you have no employees and are a sole proprietor or officer of a corporation).

Contractor's License Bond

All California contractors must maintain a $25,000 contractor's license bond (as of 2026). This bond protects consumers if you fail to complete a job or violate the Contractors License Law. The bond is not the same as insurance — it's a separate requirement.

General Liability Insurance

While general liability insurance is not universally required by the CSLB for all license types, it is required for certain classifications and is required by most general contractors before they'll hire a subcontractor. Many project owners and municipalities also require proof of GL before awarding contracts.

What Happens If You're Not Compliant?

• Your license can be suspended or revoked
• You can be fined up to $15,000 per violation
• You may be personally liable for employee injuries
• You can lose contracts that require proof of insurance

How We Help You Stay Compliant

At Asena Capital Insurance Services, we specialize in CSLB-compliant coverage for California contractors. We'll make sure you have exactly what you need — nothing more, nothing less — and we can issue your certificate of insurance the same day in most cases.