California Contractor General Liability Insurance

Protect your business, meet client demands, and win more projects with trusted coverage.

If you're a California contractor, general liability insurance is crucial protection for your business. While it's not a state license requirement, most clients—commercial, residential, and general contractors—expect proof of California contractor general liability insurance before they'll hire you. This coverage is strongly recommended because it shields your business from third-party claims of property damage, bodily injury, and legal costs that can arise on any jobsite.

Carrying general liability insurance for California contractors is also a smart way to stand out in a competitive market, show professionalism, and protect your livelihood from unexpected risks.

General Liability Application

Why Contractors Need General Liability Insurance in California

More clients than ever—including property owners, municipalities, and general contractors—are requiring proof of contractor liability insurance in California before awarding contracts. Without coverage, you could miss out on jobs or be held personally liable for expensive damages.

When you work with CCIS, you'll receive a Certificate of Insurance you can show to clients as evidence of your California contractor insurance. Need someone listed as an "Additional Insured"? We can take care of that quickly—just let us know.

What General Liability Insurance for California Contractors Covers

California construction liability insurance protects you from various third-party claims related to your operations:

• Bodily Injury: Covers accidental injuries to non-employees resulting from your work, including medical costs and legal fees.
• Property Damage: Protects against accidental damage to third-party property caused by your business.
• Products and Completed Operations: Covers claims that arise after a project is finished for work performed during your policy period.
• Medical Payments: Pays for immediate medical expenses if someone is injured on your jobsite, typically up to $5,000.
• Personal and Advertising Injury: Protects against claims such as slander, libel, or copyright infringement—less common but included in standard policies.

Coverage does not include faulty workmanship or damages to the insured's work.

Typical limits include:

• $1 million per occurrence
• $2 million aggregate
• $2 million for products/completed operations

Insurance carriers can provide numerous variations on these restrictions. If additional coverage is required, a contractor can buy an Excess policy. The Excess coverage will cover any damages that exceed the maximum limits of the primary General Liability policy.

How Much Will It Cost?

The cost of contractor liability insurance in California varies depending on your trade, payroll, subcontractor costs, gross receipts, and business location.

To give you an idea, here are some average policy ranges:

*Prices shown are for a one year term and based on several factors including, but not limited to, classification, payroll, subcontractor costs, gross receipts and location. Rates do not constitute an offer of coverage and are subject to change at any time. Rates may fall outside average ranges shown here due to exceptional risk factors.

Did You Know…

Most project owners require at least a $2 million aggregate limit for California construction liability insurance. The $1 million and $2 million aggregate limit is usually minimal, so it's smart to opt for the higher limit to meet client expectations.

Understanding Claims and Policy Types

There are two types of general liability insurance for California contractors:

Occurrence-Based: Covers incidents that happen during your policy period, regardless of when the claim is filed (the most accepted and recommended type).
Claims-Made: Covers claims only if the incident and claim filing both happen while the policy is active. These are less accepted by third parties.

With occurrence-based policies, claims can often be reported for up to ten years after the policy period, providing long-term protection for completed work. If a claim is filed, your insurer will handle defense and settlement up to your policy limit. You're only responsible for your deductible.

General Liability Coverage for All Types of California Contractors

CCIS provides California contractor general liability insurance for a wide range of construction professionals, including:

• General Contractors (residential and commercial)
• Electricians
• Painters and drywall contractors
• Concrete and masonry specialists
• Landscapers and tree service contractors
• Plumbers
• Roofers
• HVAC technicians
• Carpenters and framers
• Remodelers and home improvement professionals

Each trade faces unique risks—our team helps you tailor a policy to fit your specific needs and contract requirements so you never pay for unnecessary coverage.

Frequently Asked Questions: California Contractor General Liability Insurance