New CSLB Licensee Guide

New Contractor Insurance
Package — California

Just got your CSLB license? Get everything you need to start contracting legally in California — GL, Workers' Comp, and your $25,000 Bond — in one place.

(858) 925-9555

· Same-business-day coverage available, subject to underwriting approval

What You Need — In Order

Follow this sequence to get legally covered and ready for your first job bid as fast as possible.

Step 1

Contractor License Bond

Same business day*Required by CSLB

Your $25,000 bond must be filed with the CSLB before you can legally contract. LLC licensees also need a $100,000 Employee/Worker Bond.

$100–Varies

Step 2

General Liability Insurance

Same business day*Required for most bids

Most GCs and project owners require a GL certificate before they'll hire you. Get at least $1M/$2M in coverage.

$1,500–Varies

Step 3

Workers' Compensation

1–3 business daysRequired if you have employees

Required by CA law if you have any employees. Also required for sole proprietors in C-8, C-20, C-22, C-39, and D-49 trades (SB 216).

$800–$3,000+/year

* Subject to carrier underwriting approval and application completeness.

SB 216: New WC Requirements for Sole Proprietors

If you hold a C-8, C-20, C-22, C-39, or D-49 license as a sole proprietor, you are required to carry Workers' Compensation insurance even with no employees (effective January 1, 2023). Phase 2 (January 1, 2028) will extend this to ALL CSLB licensees. A ghost policy ($800–Varies) satisfies this requirement at minimal cost.

Also Consider for Your First Year

Commercial Auto Insurance

If you drive any vehicle for business — even a personal pickup to a job site — you need commercial auto. Personal policies exclude business use.

Inland Marine / Tools & Equipment

Your GL policy does NOT cover tools stolen from a job site. Inland marine fills this gap at $300–Varies.

BOP (Business Owner's Policy)

If you have a physical business location, a BOP bundles GL + property + business interruption at 20–30% less than buying separately.

Professional Liability (E&O)

If you provide design, consulting, or project management services, E&O covers claims from professional errors not covered by GL.

Frequently Asked Questions

What insurance do I need as a new California contractor?

New California contractors need: (1) a $25,000 Contractor License Bond, (2) General Liability insurance ($1M/$2M minimum), and (3) Workers' Compensation if you have employees or are in a Phase 1 SB 216 trade. Commercial Auto is also required if you use any vehicle for business.

How fast can I get covered?

Asena Capital Insurance Services can typically issue your contractor bond and GL policy within the same business day, subject to carrier underwriting approval. WC policies typically take 1–3 business days.

How much does new contractor insurance cost in California?

A typical new contractor insurance package costs $2,500–Varies for GL + Bond. Adding Workers' Comp increases the total depending on your payroll and trade.

Do I need workers' comp if I work alone?

If you are a sole proprietor with no employees, you may be exempt — unless you are in a Phase 1 SB 216 trade (C-8, C-20, C-22, C-39, D-49). Phase 2 (January 1, 2028) will require all CSLB licensees to carry WC.

What is a ghost policy?

A ghost policy is a workers' comp policy with no covered employees — it satisfies the CSLB requirement at minimal cost ($800–Varies) for sole proprietors who need WC but have no employees.

Ready to Get Your New Contractor Package?

Call us now or submit your information online. We specialize in new contractor insurance and can typically have you covered within the same business day.