Contractor Insurance 101: What Coverage Do You Really Need?

Insurance is Non-Negotiable

Proper insurance protects your business, your employees, and your clients. It's also required for many projects.

Required Coverage in California

Workers' Compensation

Required if you have any employees. Covers workplace injuries and protects you from lawsuits.

Contractor's Bond

Required by the CSLB. Amounts vary by license classification.

Recommended Coverage

General Liability Insurance

Covers property damage and bodily injury claims. Most clients require $1-2 million minimum.

Commercial Auto Insurance

Covers vehicles used for business. Personal auto policies don't cover business use.

Professional Liability (E&O)

Covers claims of professional negligence or errors in your work.

Umbrella Policy

Provides additional liability coverage beyond primary policies.

How Much Coverage?

Most residential projects require $1-2 million in general liability. Commercial projects often require more. Check project requirements before bidding.