Demolition and Building Moving Contractor Insurance in California (C-21)

What the C-21 license covers

The CSLB’s definition

“A building moving/demolition contractor raises, lowers, cribs, underpins, demolishes and moves or removes structures, including their foundations. This classification does not include the alterations, additions, repairs or rehabilitation of the permanently retained portions of such structures.”

Falling debris, collapse and heavy equipment drive the injury side. On the liability side, the claims are damage to adjoining buildings, undermined foundations next door, dust and vibration complaints, and asbestos or lead discovered mid-job. Many general liability policies exclude demolition, explosives, or work above a set height, and nearly all exclude pollution, so read the exclusions before you bid.

The C-21 coverage stack

General Liability — confirm there’s no demolition, height or adjoining-property exclusion
Workers’ Compensation — rated by the structure: wood, concrete, steel or masonry
Commercial Auto — dump trucks, haulers and lowboys
Inland Marine — excavators, breakers, cribbing and moving dollies
CSLB license bond — the $25,000 bond every C-21 license needs
Excess & Umbrella — commercial demolition contracts often require $5M or more

C-21 requirements

What California requires of a C-21 licensee

Requirement	What applies to C-21 demolition contractors
Contractor’s license bond	A $25,000 bond is required to activate and keep the license. LLC licensees also need a $100,000 LLC employee/worker bond. How the bond works
Workers’ compensation	Required now if you have even one employee. With no employees you can file a CSLB exemption, but that option ends for every classification on January 1, 2028. Check your requirement
General liability	Required by the CSLB only for LLC licensees (at least $1 million). General contractors and owners require it anyway, usually with additional insured status.

Workers’ comp class codes and 2026 rates

Class code	Description	Advisory rate per $100 payroll
5403 / 5432	Wood structures (rated as carpentry), under / at or above $46.00/hr	$12.08 / $5.32
5213	Concrete or concrete-encased steel structures (concrete construction)	$5.16
5040	Steel structures, tanks and towers (structural iron or steel erection)	$10.05
5027 / 5028	Masonry structures, under / at or above $37.00/hr	$9.33 / $4.93

Source: WCIRB California, approved September 1, 2026 advisory pure premium rates and classification descriptions. These are benchmark loss costs, not quotes: each carrier files its own rates, and your experience mod and credits adjust the final premium.

The WCIRB has no single demolition code. When a building is razed or a floor or exterior wall comes out, all work at the site is rated in the construction class for the type of structure being torn down, as shown above. Interior “soft” demolition during a remodel is rated in the class for installing the same material, such as drywall or plumbing. Building moving, raising and cribbing has no class of its own in the 2026 rate file, so we get the code confirmed in writing by the carrier before binding.

4 codes

demolition is rated by what you tear down

Exclusions

demolition, height and pollution are common on GL policies

WC by 2028

every C-21 needs a policy, employees or not

Common questions

C-21 coverage, answered

What is the workers’ comp class code for demolition in California?

There is no single demolition code. When a structure is razed, the WCIRB rates the work by the type of structure: 5403/5432 for wood ($12.08 / $5.32 per $100 of payroll in 2026), 5213 for concrete ($5.16), 5040 for steel ($10.05) and 5027/5028 for masonry ($9.33 / $4.93).

Why is demolition insurance hard to get?

Many carriers exclude demolition, explosives or work above a certain height, and adjoining-property damage claims are expensive. A broker who places demolition regularly knows which markets write it without those exclusions.

What is the class code for building moving or house raising?

The WCIRB’s 2026 rate file has no class named for building moving, raising or cribbing. The code depends on your operations, so get the carrier’s classification in writing before you bind rather than assume one.

Do demolition contractors need workers’ comp with no employees?

A C-21 with no employees can file the CSLB exemption until January 1, 2028, when it ends for every classification.

Demolition and Building Moving Contractor Insurance in California

The CSLB’s definition

The C-21 coverage stack

What California requires of a C-21 licensee

Workers’ comp class codes and 2026 rates

C-21 coverage, answered

Get a C-21 quote that fits the work