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California Contractor Bond and Insurance: What You Actually Need

Plain-English breakdown of the $25,000 contractor bond, workers comp, and liability insurance California requires before you can pull permits.

5 min read · June 12, 2026

California Contractor Bond and Insurance

Passing the exam is only half the battle. Before CSLB issues your license, you must show proof of:

1. $25,000 contractor bond

A surety bond protects consumers — not you. Cost: typically $150-$400/year depending on credit. Required for every active CSLB license.

2. Qualifying individual bond (if applicable)

If you're using someone else as the RME/RMO, you need an additional $12,500 bond.

3. Workers' compensation

  • Required if you have any employees
  • Exempt if you have zero employees (file CSLB Exemption form)
  • C-39 (Roofing) — always required, no exemption allowed

Not required by CSLB but required by virtually every general contractor, GC, and homeowner. Get at least $1M/$2M.

5. Commercial auto

Personal auto policies exclude business use. If you drive to job sites in your truck, you need a commercial policy.

Total monthly cost

Most solo contractors pay $200-$500/month for bond + GL + commercial auto. Add workers' comp and it climbs to $400-$1,200/month depending on payroll.

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FAQ

Frequently asked questions

How much is the California contractor bond?

The bond amount is $25,000, but the annual premium is typically $150-$400 based on credit.

Do I need workers comp if I have no employees?

No — you can file a CSLB exemption. C-39 Roofing contractors are the exception and always need workers comp.