Small-business cover in California.
Workers’ comp threshold in California: Required for all employers with one or more employees[S].
Updated 2026-05-16 · Beaconcover editorialThe short answer: In California, workers' compensation is required for all employers with one or more employees. Most clients and licenses also ask for general liability before you can take a job.
What does California require?
Required for all employers with one or more employees[C]
Workers' compensation is mandatory for virtually all employers from the first employee under California Labor Code Section 3700. Certain contractor classifications also require coverage even with no employees (e.g., roofing contractors). Many contractor classifications require a CSLB license and a contractor license bond. Business insurance products are regulated by the California Department of Insurance.
What licensing and bonding does California require?
- Most construction trades require a CSLB contractor license plus a license bond