3 minute readBusiness
Yes — and in California, licensed contractors face specific requirements plus whatever their contracts demand. The typical package is general liability, workers' compensation, commercial auto, tools and equipment, and installation floater coverage, with additional-insured endorsements for general contractors and owners.
What you need to know
Certificates and additional insureds
Most jobs require a certificate naming the hiring party as additional insured, sometimes with primary and non-contributory wording.
Tools and equipment
Property in transit, at job sites, and installed but not yet accepted each need their own coverage.
Subcontractor risk
Uninsured subs can be added to your payroll at audit and to your liability claims by default.
Common mistakes
- Setting property and income limits from rounded-down guesses instead of real numbers.
- Skipping hired and non-owned auto because the business owns no vehicles.
- Signing contracts that require limits or wording the policy does not provide.
- Letting subcontractor certificates lapse, which shows up at audit.
- Treating insurance as a one-time purchase while the business keeps changing.
When to talk to an agent
Talk to an agent before signing a lease or a major contract, when you hire your first employee, when revenue or payroll changes materially, and any time you add a service, location or vehicle.
Frequently asked
This article is general information, not a policy or a promise of coverage. What your policy pays depends on its specific terms, limits and exclusions. Ask us to review your actual policy before making a decision.