What insurance does a C-36 plumbing contractor need in California?

California law requires two things of almost every C-36 plumbing contractor: workers' compensation insurance if you have one or more employees (Labor Code §3700), and a $25,000 contractor's license bond on file with CSLB. If your company is an LLC, the state adds a $100,000 employee/worker bond and general liability insurance of at least $1,000,000.

Everything else is required by the people who hire you rather than by the state. General contractors, property managers and commercial customers almost always require general liability (commonly $1,000,000 per occurrence), and many require commercial auto, a certificate naming them as additional insured, and sometimes an umbrella. Tools and equipment coverage is required by nobody but protects the gear in your vans, which no other policy covers.

Two timing points matter. A workers' compensation exemption on file becomes invalid the day you hire anyone, and CSLB must receive proof of coverage within 90 days of that hire. And under SB 1455, the exemption option for C-36 licensees ends on January 1, 2028, after which every licensee must carry workers' compensation regardless of employees.