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.

LLC Contractor Insurance Requirements California — $100K Bond + $1M GL Explained

LLC Contractor Insurance Requirements

California LLC contractors must carry three types of coverage to maintain their license: (1) $25,000 Contractor License Bond (same as all contractors), (2) $100,000 LLC Employee/Worker Bond (mandatory for all LLC licenses), and (3) General Liability Insurance with a minimum $1M aggregate limit.

LLC GL Requirements

The GL minimum is $1M aggregate for LLCs with 5 or fewer personnel of record. For each additional person beyond 5, add $100,000 to the minimum, up to a maximum of $5M. This is a CSLB requirement — your license will be suspended if your GL lapses.

LLC Employee/Worker Bond

The $100K LLC bond is separate from the standard $25K contractor license bond. Both must be maintained continuously. The $100K bond covers wages, benefits, and other obligations to employees. Cost: typically pricing varies by classification, payroll, operations, claims history, limits, and underwriting/year depending on credit.