Small-business cover in California.
In California, workers’ comp is required at Required for all employers with one or more employees[S]California workers' compensation threshold. 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.
Updated 2026-05-16 · Beaconcover editorialThe short answer: Business insurance in California starts with workers' compensation, required at Required for all employers with one or more employees, plus the general liability that most clients and licenses ask for before you can take a job.
What does California require?
Required for all employers with one or more employees[C]California workers' compensation threshold
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
- High-volume contractor and cleaning markets; competitive premiums