California Contractor Insurance
Asena Capital Insurance Services — California-licensed insurance brokerage serving contractors statewide. Phone: (858) 925-9555. Email: info@asenainsurance.com.
The B-2 residential remodeling license (created by SB 1189, effective 2021) lets contractors take remodeling jobs on existing wood-frame homes that involve at least three unrelated trades — without structural changes to load-bearing parts. Remodelers work inside occupied homes, which shapes the insurance.
CSLB's definition: “(a) A residential remodeling contractor is a contractor whose principal contracting business is in connection with any project to make improvements to, on, or in an existing residential wood frame structure, and the project requires the use of at least three unrelated building trades or crafts for a single contract. (b) (1) A residential remodeling contractor may take a prime contract for trades or crafts which may include, but is not limited to, the following: (A) Drywall. (B) Finish carpentry. (C) Flooring. (D) Insulation. (E) Painting. (F) Plastering. (G) Roof repair. (H) Siding. (I) Tiling. (J) Installing, repairing, or replacing electrical fixtures, such as dimmers, fans, lights, outlets, and switches. (K) Installing, repairing, or replacing plumbing fixtures, such as faucets, sinks, toilets, and tubs. (L) Installing, repairing, or replacing mechanical fixtures, such as air filters,…” (California Code of Regulations / Business and Professions Code, via cslb.ca.gov).
CSLB's public license file (September 2026) shows 1,684 current B-2 licenses statewide. 26% have a workers' comp policy on file and 73% are filed exempt. 44% are sole owners, 42% corporations and 13% LLCs; 376 were issued in the last 12 months.
Right now 6 B-2 licenses are suspended for workers' comp and 70 for bond problems — a suspended license cannot legally contract.
| Licenses | With WC policy | Exempt | New (12 mo) | |
|---|---|---|---|---|
| San Diego | 75 | 28% | 72% | 12 |
| Sacramento | 63 | 17% | 81% | 17 |
| Los Angeles | 53 | 25% | 74% | 15 |
| San Jose | 43 | 44% | 56% | 7 |
| Riverside | 24 | 17% | 79% | 2 |
| San Francisco | 19 | 42% | 58% | 3 |
| Oceanside | 19 | 5% | 95% | 3 |
| Fresno | 19 | 32% | 68% | 5 |
| Escondido | 17 | 24% | 76% | 4 |
| Chula Vista | 17 | 24% | 76% | 4 |
Any California contractor with employees must carry workers' comp (Labor Code 3700). A license with no employees can currently file an exemption with CSLB; beginning January 1, 2028 (SB 1455), CSLB will require workers' comp for all active licenses, with joint-venture licenses the only exception.
The WCIRB classes depend on the trades you self-perform on each remodel.
Carriers want to know how much you subcontract, whether you collect certificates from subs, and the average project size.
Contracts commonly require $1 million per occurrence / $2 million aggregate, additional insured status for the GC or owner, primary and non-contributory wording and a waiver of subrogation. We request additional insured endorsements for you when a contract calls for them.
Remodelers usually drive pickups or vans with trailers; work vehicles belong on commercial auto.
California's private passenger minimums are 30/60/15 (since January 1, 2025); contracts usually require $1 million combined single limit.
Every active California contractor license needs a $25,000 contractor license bond on file with CSLB (raised from $15,000 on January 1, 2023). For owners with good credit, the bond commonly costs about $140–$250 a year; price depends mainly on credit.
LLC licenses also need a $100,000 employee/worker bond and liability insurance of at least $1 million (plus $100,000 per member over five, up to $5 million).
Asena Capital Insurance Services compares multiple markets for residential remodeling (b-2) contractors and requests additional insured endorsements for you when a contract calls for them. Call (858) 925-9555 or request a quote — only your name, phone and email are required. CA License #6008596.
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