Do California Contractors Need Both Workers' Comp and Commercial Auto?
The short answer: most California contractors who have employees AND use vehicles for work need both. Here's how to know exactly what applies to your situation.
When You Need Workers' Comp
California Labor Code §3700 requires workers' comp for any contractor with one or more employees. This includes:
- W-2 employees on your payroll
- Part-time employees (even 1 hour of work triggers the requirement)
- Family members you pay for work
Sole proprietors with zero employees are exempt but can get a ghost policy to satisfy CSLB and GC requirements.
When You Need Commercial Auto
You need commercial auto if you use any vehicle for business purposes, including:
- Driving to and from job sites
- Transporting tools, materials, or equipment
- Carrying employees to job sites
- Towing trailers with equipment
Personal auto policies explicitly exclude business use. Using a personal vehicle for work without commercial auto coverage is a significant financial risk.
The Bundle Advantage
Most California contractors who need both workers' comp and commercial auto can save by bundling both with the same broker. Benefits include:
- Single point of contact for all coverage questions
- Coordinated COI issuance (one call for both certificates)
- Potential multi-policy discounts with certain carriers
- Simplified renewal process
Review Both Coverage Needs
Call (858) 925-9555 or visit our WC + Commercial Auto bundle page to get both coverages quoted at once.