Earthwork and Paving Contractor Insurance in California (C-12)

What the C-12 license covers

The CSLB’s definition

“An earthwork and paving contractor digs, moves, and places material forming the surface of the earth, other than water, in such a manner that a cut, fill, excavation, grade, trench, backfill, or tunnel (if incidental thereto) can be executed, including the use of explosives for these purposes.”

Hitting a gas, water or fiber line can turn a small grading job into a six-figure liability claim, and heavy equipment is expensive to replace when it is stolen from an unsecured site. Some general liability policies exclude underground damage or limit it, so check that wording if you trench or excavate.

The C-12 coverage stack

General Liability — with no exclusion for underground utility damage
Workers’ Compensation — dual-wage 6218/6220 plus road codes where they apply
Commercial Auto — dump trucks, lowboys and equipment haulers
Inland Marine — excavators, loaders and pavers, on site and in transit
CSLB license bond — the $25,000 bond, plus performance and payment bonds for public work
Excess & Umbrella — public agencies and developers routinely require $5M+

C-12 requirements

What California requires of a C-12 licensee

Requirement	What applies to C-12 earthwork and paving 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
6218	Excavation or grading, workers paid under $45.00/hr	$5.39
6220	Excavation or grading, workers paid $45.00/hr or more	$3.61
5506	Street or road paving or resurfacing	$5.60
5507	Street or road grading	$3.80

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.

Excavation and land grading is a dual-wage pair split at $45.00 an hour for policies starting on or after September 1, 2026. Street and road work has its own codes, so a contractor who grades lots and paves roads may report payroll in several.

$45/hr

the wage line that splits 6218 from 6220

Underground damage

check your GL for utility-strike exclusions

Equipment floater

insures machines on site and in transit

Common questions

C-12 coverage, answered

What is the workers’ comp class code for grading and excavation in California?

Excavation and land grading is code 6218 for workers paid under $45.00 an hour and 6220 for workers paid $45.00 or more, on policies starting on or after September 1, 2026. The WCIRB’s 2026 advisory rates are $5.39 and $3.61 per $100 of payroll. Road paving is 5506 and road grading is 5507.

Does general liability cover hitting an underground utility line?

It can, but some policies exclude or limit underground property damage. If you dig, trench or bore, confirm your policy covers it before the job.

How do I insure heavy equipment?

With an inland marine contractor’s equipment floater, which covers machines against theft and damage on the jobsite and in transit. Expensive machines should be scheduled individually with their values.

Is general liability required for a C-12 license?

The CSLB requires it only of LLC licensees, at least $1 million. Public agencies and developers will require it, usually with higher limits and an umbrella.

Earthwork and Paving Contractor Insurance in California

The CSLB’s definition

The C-12 coverage stack

What California requires of a C-12 licensee

Workers’ comp class codes and 2026 rates

C-12 coverage, answered

Get a C-12 quote that fits the work