The short answer
Every California contractor needs a $25,000 CSLB license bond. You need workers’ compensation if you have any employees, and some classifications need it even without employees. General liability is legally required only for LLC licensees, but nearly every general contractor and owner requires it before you start. From January 1, 2028, every licensee needs workers’ comp.
What the state requires, by license type
| Requirement | Who it applies to | Details |
|---|---|---|
| Contractor’s license bond | Every licensee | $25,000, usually about $100–$250 a year with good credit. How it works |
| Workers’ compensation | Anyone with employees | Required from your first employee, full-time or part-time. |
| Workers’ comp, no employees | C-8, C-20, C-22, C-39, C-61/D-49 | Required regardless of employees today. A lapse suspends the license. |
| Workers’ comp, everyone | All classifications | Required from January 1, 2028 under SB 216 as amended by SB 1455. Check yours |
| General liability | LLC licensees | At least $1 million, rising with the number of people on the license, up to $5 million. |
| LLC employee/worker bond | LLC licensees | $100,000, in addition to the license bond. |
If you hire subcontractors, collect a workers’ comp certificate or CSLB exemption from each one. Under California law an unlicensed “sub” is presumed to be your employee, and at audit an uninsured sub’s labor is usually added to your payroll. More on 1099 subs
What general contractors and owners require
The legal minimum rarely gets you on a jobsite. A typical subcontract asks for:
- General liability at $1 million per occurrence and $2 million aggregate, with the GC named as additional insured on a primary and non-contributory basis and a waiver of subrogation.
- Workers’ compensation, or a CSLB exemption, also with a waiver of subrogation.
- Commercial auto for vehicles used on the job.
- Umbrella or excess limits on larger commercial and public projects, often $2–5 million. How limits stack
All of this shows up on a certificate of insurance. Our clients pull their own certificates from the portal instantly, any time of day. What a GC means by “COI”
What it costs
Price depends mostly on your trade, payroll, revenue and claims history. Published 2026 benchmarks to anchor on:
- General liability: about $596 a month for construction businesses at $1M/$2M limits (MoneyGeek’s 2026 study). Low-risk solo trades price well below that; roofers and hot-work trades above.
- Workers’ comp: the statewide benchmark is $1.65 per $100 of payroll, but trades range from under $3 to over $20 (table below).
- License bond: about $100–$250 a year with good credit.
Full cost breakdown with sources
2026 workers’ comp rates by trade
Workers’ comp is priced per $100 of payroll by class code. Many construction trades have two codes split by hourly wage: workers paid at or above the threshold go in the lower-rated code. These are the WCIRB’s approved advisory rates for policies starting on or after September 1, 2026. Demolition has no code of its own: it is rated by the type of structure torn down (see the C-21 page).
| Trade | CSLB class | WC code(s) | Rate (under threshold) | Rate (at or above) | Wage threshold |
|---|---|---|---|---|---|
| Roofing | C-39 | 5552 / 5553 | $20.83 | $12.11 | $33 |
| Tree and palm | C-49, D-49 | 0106 | $12.39 | — | single code |
| Carpentry and framing | B, B-2, C-5 | 5403 / 5432 | $12.08 | $5.32 | $46 |
| Sign erection | C-45 | 9552 | $10.95 | — | single code |
| Masonry | C-29 | 5027 / 5028 | $9.33 | $4.93 | $37 |
| Painting and waterproofing | C-33 | 5474 / 5482 | $8.51 | $4.78 | $36 |
| Plastering and stucco | C-35 | 5484 / 5485 | $8.45 | $6.45 | $42 |
| Concrete | C-8 | 5201 / 5205 | $8.25 | $4.75 | $36 |
| Glazing | C-17 | 5467 / 5470 | $7.51 | $3.35 | $43 |
| Sewer and septic installation | C-42 | 6307 / 6308 | $7.45 | $4.12 | $45 |
| Drywall (wallboard) | C-9 | 5446 / 5447 | $6.23 | $3.25 | $45 |
| Ornamental metal erection | C-23 | 5102 | $6.14 | — | single code |
| Fencing | C-13 | 6400 | $6.02 | — | single code |
| Sheet metal and HVAC ductwork | C-43, C-20 | 5538 / 5542 | $5.87 | $3.67 | $37 |
| Plumbing, heating and refrigeration | C-36, C-20, C-38 | 5183 / 5187 | $5.72 | $2.73 | $35 |
| Cabinet and trim installation | C-6 | 5146 | $5.71 | — | single code |
| Landscape gardening | C-27 | 0042 | $5.58 | — | single code |
| Insulation | C-2 | 5479 | $5.42 | — | single code |
| Excavation and grading | C-12 | 6218 / 6220 | $5.39 | $3.61 | $45 |
| Welding or cutting | C-60 | 3365 | $5.29 | — | single code |
| Fire sprinklers | C-16 | 5185 / 5186 | $5.19 | $2.36 | $36 |
| Tile and stone | C-54 | 5348 | $5.05 | — | single code |
| Solar PV installation | C-46 | 3724 | $4.24 | — | single code |
| Electrical | C-10 | 5190 / 5140 | $3.73 | $2.11 | $40 |
| Low-voltage cabling | C-7 | 5195 | $2.73 | — | single code |
| Security and access control systems | C-28 | 7605 | $2.68 | — | single code |
Source: WCIRB California, approved September 1, 2026 advisory pure premium rates, classification descriptions and dual-wage thresholds. These are benchmark loss costs, not quotes: each carrier files its own rates, and your experience mod and credits adjust the final premium. How premium is calculated
Coverage by trade
Each trade page covers that license’s requirements, its workers’ comp codes and the coverage general contractors expect.