What Is Contractors Insurance?
Contractors insurance is a group of business policies built for construction and trade work. A typical program combines general liability, workers compensation, commercial auto, and coverage for tools and equipment, and may add builders risk, professional liability, or an umbrella depending on the work. California also requires licensed contractors to carry a contractor’s bond, and some must carry specific insurance to keep their license active.
Oakview Insurance Services, Inc. writes contractors insurance for trades and construction businesses in Yuba City, Marysville, and throughout Northern California, from solo owner-operators to multi-crew companies.
As an independent agency, we compare options from multiple insurers and build the program around your trade, your work, and your contract requirements. Call (530) 674-5054 or start a quote online.
Contractor Coverage at a Glance
Most contractor programs are assembled from the coverages below. Which ones you need depends on your trade, your crew, your vehicles, and what your contracts require.
| Coverage | What it is for | Who usually needs it |
|---|---|---|
| General liability | Covered claims for bodily injury and property damage to others, including after the job is finished | Nearly every contractor, and required for licensed LLCs |
| Workers compensation | Benefits for employees injured on the job | Employers, certain license classes now, and other active licenses starting 2028 |
| Commercial auto | Liability for work vehicles, with optional physical damage | Contractors with trucks, vans, or employee drivers |
| Inland marine | Tools and equipment in transit and on job sites | Contractors who move tools between sites |
| Builders risk | A structure under construction and its materials | General contractors, developers, and major remodels |
| Professional liability | Claims tied to design, specification, or advice | Design-build contractors and consultants |
| Umbrella | Additional liability limits above GL and auto | Contractors on larger projects or with contract limit requirements |
Contractor Trades We Insure
We work with contractors across a wide range of trades throughout Yuba, Sutter, Butte, and Colusa Counties, including:
- General contractors and remodelers
- Electricians (C-10)
- Plumbers (C-36)
- HVAC contractors (C-20)
- Painters (C-33)
- Landscapers and hardscapers (C-27)
- Flooring contractors (C-15)
- Carpenters and framers
- Roofers
- Concrete and masonry contractors
- Excavation and grading contractors
- Drywall and insulation contractors
- Glaziers
Not sure if your trade fits? Call us at (530) 674-5054.
Excavation and Grading
Excavation and grading carry significant liability exposure from underground utility strikes, earth movement, and damage to neighboring property. Programs should have liability limits and equipment coverage that match the work, and the policy’s classification should describe what you actually do.
Concrete and Masonry
Concrete and masonry work creates completed operations exposure, meaning claims for injury or damage that surface after the job is finished. Programs for flatwork, foundation, and masonry contractors should confirm completed operations coverage, along with tools and equipment coverage and workers compensation.
Remodeling Contractors
A single remodel can touch structural, cosmetic, and mechanical work at once. Remodelers often need general liability, inland marine, and, on larger projects, builders risk working together, written around the actual scope and size of their jobs.
Contractor Coverage Options
General Liability
General liability is the foundation of most contractor programs. It responds to covered claims for bodily injury, property damage, and personal and advertising injury, including defense costs, subject to the policy’s limits and exclusions. Products-completed operations coverage, usually part of general liability, can respond to covered bodily injury or property damage caused by completed work after the job is finished, subject to policy terms and exclusions. Confirm that it applies to your actual operations. Most general contractors and project owners require a certificate of insurance before work begins. See our general liability page.
Workers Compensation
Workers compensation pays benefits to employees injured on the job and is required in California for employers. It is generally an employee’s exclusive remedy against the employer, and most policies include employers liability coverage for certain related lawsuits. Rates vary widely by trade and classification. See our workers compensation page and the 2028 change below.
Commercial Auto
Commercial auto covers liability for work trucks and vans, with optional physical damage for the vehicles themselves. A personal auto policy may not adequately cover a vehicle titled to the business, employee drivers, or regular business use. See our commercial auto page.
Inland Marine
Commercial property policies are built around your premises and provide only limited coverage for property elsewhere. Inland marine is designed for tools and equipment in transit or on job sites, such as gear stolen from a trailer overnight, subject to its covered causes of loss, limits, and deductible.
Builders Risk
Builders risk covers a structure under construction, and often the materials for it, against losses such as fire, wind, theft, and vandalism before the project is complete. Lenders and project owners often require it for new construction and major renovations, and the contract usually determines who buys it.
Contractors Professional Liability
Design-build contractors and those providing consulting or project management services face professional exposure that general liability typically excludes. Contractors professional liability may cover claims that your design, specification, or advice caused a financial loss, depending on the policy form.
Commercial Umbrella
A commercial umbrella adds liability limits above your general liability and commercial auto policies. General contractors and property owners often require umbrella limits from subcontractors on larger projects, and an umbrella can help meet those requirements when its wording and the underlying coverage satisfy the contract.
CSLB Bond and Insurance Requirements
The short answer: California generally requires a CSLB license when the total project cost, including labor, materials, and other costs, is $1,000 or more, or when the work requires a building permit or uses employee labor. A larger project cannot be divided into smaller contracts to avoid licensing. Every active license must satisfy CSLB’s $25,000 contractor bond requirement through a surety bond or an accepted cash alternative, and depending on how the business is structured and staffed, additional bonds and insurance may also be required.
| Requirement | Who it applies to | Notes |
|---|---|---|
| Contractor’s bond, $25,000 | Every active license | Satisfied by a surety bond or an accepted cash alternative. Increased from $15,000 on January 1, 2023. Failing to maintain it can suspend the license. |
| Bond of qualifying individual, $25,000 | Responsible managing employees, and officer, manager, or member qualifiers who own less than 10% of the corporation or LLC | Officer, manager, or member qualifiers with at least 10% ownership can establish an exemption with the required certification. Responsible managing employees do not qualify for that exemption. |
| LLC employee/worker bond, $100,000 | LLC licensees | Separate from the contractor’s bond. |
| General liability | LLC licensees | At least $1 million for five or fewer personnel of record, plus $100,000 for each additional person, up to $5 million. Not required by CSLB for other structures, though clients commonly require it. |
| Workers compensation | Employers, and certain classes regardless of employees | See the 2028 change below. |
Commercial auto is not a CSLB license requirement, but California’s financial responsibility laws apply to every vehicle, and clients often set their own vehicle insurance requirements. For trade-specific details, see our pages for plumbers, electricians, HVAC contractors, painters, landscapers, and flooring contractors.
Workers Comp and the 2028 Change
Today, most license classifications require workers compensation only if you have employees, and a solo operator can file an exemption with CSLB. There are already exceptions. C-39 roofing contractors and, since January 1, 2023, C-8, C-20, C-22, and C-61/D-49 contractors generally must maintain workers compensation insurance or approved self-insurance even without employees.
Under current law, beginning January 1, 2028, the requirement extends to other active contractor licenses, with or without employees. Qualifying joint ventures with no employees have a statutory exemption. If you are a solo operator today, setting up coverage ahead of the deadline gives you time to compare options and avoid a lapse in your license.
Certificates of Insurance
A certificate of insurance shows a general contractor, property owner, municipality, or lender that you carry the required coverage. A certificate does not create coverage on its own, so additional insured status and other contract requirements need the matching endorsements on the policy. To request one, call (530) 674-5054 or email us with:
- The name and address of the certificate holder
- Whether additional insured status, waiver of subrogation, or primary and non-contributory wording is required
- The project name or contract, if applicable
For coverage already in place, we issue most certificates the same business day. New coverage or endorsements may need carrier approval first, so the sooner we see the contract requirements, the better.
Serving Contractors Throughout Yuba-Sutter
We serve contractors in Yuba City, Marysville, Live Oak, Olivehurst, Linda, Gridley, Wheatland, Plumas Lake, Colusa, Chico, and throughout Yuba, Sutter, Butte, and Colusa Counties and broader Northern California. That includes ZIP codes 95991, 95992, and 95993 in Yuba City, 95901 in Marysville and Linda, 95961 in Olivehurst and Plumas Lake, and 95953 in Live Oak.
Oakview is rated 4.9 stars, with 850+ five-star Google reviews, and has been voted Best Agency in Yuba, Sutter, and Colusa Counties multiple years running. Read what clients say on Google or meet our team.
Contractors Insurance FAQs
Is general liability insurance required for contractors in California?
For licensed contractor LLCs, yes. CSLB requires LLCs to carry general liability of at least $1 million for five or fewer personnel of record, plus $100,000 for each additional person, up to $5 million. Other license structures are not required by CSLB to carry it, but clients, general contractors, and property owners commonly require it before work begins.
What is the CSLB contractor bond requirement?
Every active California contractor license must satisfy CSLB’s $25,000 contractor bond requirement through a surety bond or an accepted cash alternative. The amount increased from $15,000 on January 1, 2023. LLCs also need a separate $100,000 employee/worker bond, and a $25,000 bond of qualifying individual is required for responsible managing employees and for officer, manager, or member qualifiers with less than 10% ownership. Failing to maintain the required bond can suspend the license.
Is workers compensation required for contractors with no employees in California?
For most classifications, not yet. C-39 roofing contractors and, since January 1, 2023, C-8, C-20, C-22, and C-61/D-49 contractors generally must maintain workers compensation insurance or approved self-insurance even without employees. Under current law, beginning January 1, 2028, the requirement extends to other active contractor licenses, except qualifying joint ventures with no employees.
How much does contractors insurance cost in Yuba City?
Cost depends on your trade, annual revenue, payroll, number of employees, vehicles, claims history, and coverage limits. Rates also vary between carriers by trade, which is why comparing multiple options matters. Call (530) 674-5054 for a comparison quote.
Can I get a certificate of insurance the same day?
For coverage already in place, we issue most certificates the same business day. New coverage or required endorsements, such as additional insured status, may need carrier approval first. Call (530) 674-5054 as soon as you know a job’s requirements.
Do you insure solo owner-operator contractors?
Yes. We work with sole proprietors, owner-operators, and small crews as well as larger construction businesses, and build coverage around your specific operation.
What is the difference between inland marine and commercial property insurance?
Commercial property primarily protects covered property at your insured premises, such as a shop or office, with off-premises coverage depending on the policy. Inland marine can protect covered tools and equipment at job sites, in transit, and in storage. Materials awaiting installation may need an installation floater or builders risk. The right combination depends on where your property is located and how it is used.
Do you cover contractors throughout Northern California?
Yes. We serve contractors throughout Yuba, Sutter, Butte, and Colusa Counties as well as broader Northern California, including Sacramento, Placer County, and Chico.
Talk to Oakview About Contractors Insurance
Whether you need a certificate for tomorrow’s job or a full program review, we can help. Call (530) 674-5054, email info@oakviewins.com, or request a contractors insurance quote online.