General contractor insurance in California

Why a GC policy is different

As a general contractor you answer for the whole job, not just the work your own crew does. When a sub's mistake floods a house or injures a visitor, the owner and their insurer come to you first. General liability (GL) pays for third-party bodily injury and property damage from your work, including completed operations if the policy includes it. The risks that shape a GC policy:

• Subcontractor work. Most of the hours on a job are often done by subs. Their errors become your claim.
• Completed operations. Leaks, settling and fire from work finished years ago. On new homes this tail is long.
• Job-site injuries to others. Owners, inspectors, delivery drivers and neighbors walking through an active site.
• Damage to existing structures. On a remodel, everything you did not build is still exposed: the rest of the house, the furniture, the neighbor's fence.

GL does not cover your own employees' injuries (that is workers' comp), your tools, your vehicles, or the cost to fix faulty work itself.

Your subs and their certificates

Insurers price a GC on how it handles subs. Before a sub starts, get:

• A current certificate of insurance showing GL, ideally at least the limits you carry.
• Your company named as additional insured on the sub's policy, with primary and non-contributory wording and a waiver of subrogation where you can get it.
• Proof of workers' comp or a valid CSLB exemption, and a signed subcontract with an indemnity clause.

Uninsured or underinsured subs are a problem. Many GL policies require that your subs carry their own insurance; if they do not, the policy may exclude the claim or the insurer may charge you for the sub's cost as if it were your own payroll. Fewer programs will quote a GC who cannot show certificates from subs. Keep the certificates on file and check expiration dates. Our certificate of insurance guide explains the difference between a certificate holder and an additional insured.

Remodel, new construction, tract homes and commercial

The kind of work you do changes which programs will quote you and how. Be exact in the questions.

• Residential remodel. The most common work for a B license. Water intrusion, fire from other trades and damage to the existing home drive claims.
• New construction. Custom homes carry long completed-operations exposure. Many programs ask how much of your work is new construction and price it separately.
• Tract homes, condos and multi-family. Several policies exclude tract housing, condos or townhomes, or work above a certain number of units. These projects draw construction-defect suits years later. Read for these exclusions if you build them.
• Commercial. Tenant improvements and commercial builds come with stricter contract requirements: additional insured on ongoing and completed operations, primary and non-contributory, and waiver of subrogation.

Also read for an "action over" exclusion, which can drop a claim where an injured worker sues the owner and the owner turns to you.

CSLB rules that touch a B license

This is general information from the CSLB, not legal advice.

• Single-family home builders. If you build single-family homes, you must disclose in writing whether you carry commercial general liability insurance (B&P §7164).
• Home improvement contracts. Home improvement and service-and-repair contracts must include a "Commercial General Liability Insurance" notice naming your insurer and phone number, or stating you have no CGL (B&P §7159 / §7159.10).
• LLC licenses. An LLC must carry liability insurance with an aggregate of at least $1,000,000 if 5 or fewer people are on the personnel of record, plus $100,000 per additional person, up to $5,000,000. LLCs also carry a $100,000 worker-wage bond. See the LLC insurance requirement.
• Other entities. CSLB does not require GL by law for non-LLC licensees but strongly recommends it. Owners, lenders and commercial clients require it by contract.
• Workers' comp. Every licensee files a workers' comp certificate or an exemption (B&P §7125). Current law makes workers' comp required for all licensees from 1/1/2028. See our workers' comp guide.
• License bond. Every licensee carries the $25,000 license bond. It protects consumers, not you. See bond vs insurance.

How the online quote works from your license number

1. Enter your CSLB license number. We find your business in the CSLB public record and show how many A-rated insurance companies write your classes, including any specialty classes on the same license.
2. Confirm you are the owner with your name, mobile and email.
3. Answer about a minute of tap-to-answer questions: homes or businesses, new construction, sales, payroll, how much you sub out, crew, years, claims, current insurance and start date.
4. Your quote board shops A-rated programs live. Prices arrive one by one with deductible, limits, and what is included and excluded. We also text and email you the link.
5. Tap "Submit for approval." A licensed agent handles it. Approval usually takes 30 minutes to 4 hours depending on the carrier, and the final quote is emailed to you to sign.

Nothing is bound until you sign. Once covered, we send the certificate to the owner or upstream GC. Workers' comp, commercial auto, umbrella and bonds are handled by phone at (877) 940-4313. Price depends on sales, subcontracted cost, new construction share and claims; see what drives it in our cost guide.