Residential Remodeling Contractor Insurance in California (B-2)

What the B-2 license covers

The CSLB’s definition

“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.”

Remodels happen in occupied homes, so the liability claims are water damage from a plumbing fixture, a fire from a fixture install, and damage to the owner’s finishes and belongings. The B-2 can’t touch load-bearing walls or contract plumbing, electrical or mechanical systems without the right license or a licensed sub, and a claim from work outside your license class is harder to defend. Uninsured subs are the other common audit surprise.

The B-2 coverage stack

General Liability — water damage and work in occupied homes are the claims to plan for
Workers’ Compensation — rated by trade, mostly carpentry 5403/5432
Commercial Auto — trucks and vans hauling materials and debris
Inland Marine — tools, plus materials stored on the job before install
CSLB license bond — the $25,000 bond every B-2 license needs
Excess & Umbrella — higher-end homes and property managers often ask for more

B-2 requirements

What California requires of a B-2 licensee

Requirement	What applies to B-2 remodelers
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	Carpentry, workers paid under $46.00/hr	$12.08
5432	Carpentry, workers paid $46.00/hr or more	$5.32
5446 / 5447	Wallboard installation, under / at or above $45.00/hr	$6.23 / $3.25
5474 / 5482	Painting, under / at or above $36.00/hr	$8.51 / $4.78
5348	Tile, stone, mosaic or terrazzo work	$5.05

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 “remodeling” class. Each trade your own crews perform is rated in that trade’s code, and most remodel payroll lands in carpentry. Splitting payroll across codes only holds up at audit if your time records show the hours by type of work; without them, the auditor can put the hours in the higher-rated class. Work you sub out isn’t on your payroll, but an uninsured sub’s payroll can be added to your audit, so collect their certificates.

3 trades

the minimum unrelated trades in every B-2 contract

No single code

payroll is rated trade by trade

WC by 2028

every B-2 needs a policy, employees or not

Common questions

B-2 coverage, answered

What is the workers’ comp class code for a remodeling contractor in California?

There isn’t one remodeling code. Each trade your employees perform is rated in its own code. Carpentry is usually the largest share: 5403 for workers paid under $46.00 an hour ($12.08 per $100 of payroll in the WCIRB’s 2026 advisory rates) and 5432 at $46.00 or more ($5.32).

What’s the difference between a B and a B-2 license for insurance?

Coverage needs are similar, but a B-2 can only take residential remodel contracts in existing wood frame homes with at least three unrelated trades, and it can’t alter load-bearing structure. Underwriters ask what you self-perform versus sub out, and they price structural and new-construction work differently.

Is general liability required for a B-2 license?

Only for LLC licensees, which must carry at least $1 million. Homeowners, property managers and lenders usually ask for proof of it anyway.

Do B-2 remodelers need workers’ comp with no employees?

A B-2 with no employees can file the CSLB exemption until January 1, 2028, when it ends for every classification. Watch your subs too: if one is uninsured, the carrier can charge you for their payroll at audit.

Residential Remodeling Contractor Insurance in California

The CSLB’s definition

The B-2 coverage stack

What California requires of a B-2 licensee

Workers’ comp class codes and 2026 rates

B-2 coverage, answered

Get a B-2 quote that fits the work