State notes
Insurance in California.
California writes more of its own insurance rules than most states, and it asks agencies to show their license number. These are the ones we get asked about most.
Based in Phoenix, ArizonaLicensed in 17 statesCA License #6010584
California rules
What changes here.
Every coverage page on this site is written for all the states we serve. These are the rules that differ in this one.
- 01
Workers' comp
Every employer with employees must carry it (Labor Code §3700). If the state finds you uninsured it issues a stop order, which bars using employee labor until you are covered, with a penalty of $1,500 per employee, and going without is a misdemeanor. Under AB 5 (Labor Code §2775) a worker is presumed to be an employee unless the business meets all three parts of the ABC test.
Sources: DIR: workers’ comp FAQ for employersLabor Agency: AB 5 and the ABC test. Checked October 24, 2026.
- 02
Auto minimum limits
30/60/15 since January 1, 2025: $30,000 per person and $60,000 per accident for bodily injury, and $15,000 for property damage. It was 15/30/5 before (SB 1107); policies moved to the new minimums at renewal.
Sources: California Department of InsuranceCalifornia DMV. Checked October 24, 2026.
- 03
Contractor licensing
Every Contractors State License Board (CSLB) license needs a $25,000 contractor’s bond, up from $15,000 on January 1, 2023. An LLC license also needs liability insurance: $1 million for up to five people on the license, plus $100,000 for each additional person, up to $5 million. Concrete (C-8), HVAC (C-20), asbestos (C-22), roofing (C-39) and tree service (D-49) contractors must carry workers’ comp even with no employees, and from January 1, 2028 every licensee must carry it unless the CSLB verifies an exemption.
Sources: CSLB bond requirementsCSLB: LLC licensesCSLB workers’ comp requirementsCSLB on SB 1455 (2028). Checked October 24, 2026.
- 04
Home market
Some carriers have pulled back from high wildfire-risk areas. The California FAIR Plan is the insurer of last resort: a basic policy for fire and smoke, with a difference-in-conditions (DIC) policy from a private insurer for liability, water damage and the other usual perils. Earthquake is a separate policy, through the California Earthquake Authority (CEA) or a private insurer.
Sources: Department of Insurance: the FAIR PlanInsurers offering earthquake coverage. Checked October 24, 2026.
- 05
Trucking filings
A Motor Carrier Permit from the DMV is required to run commercial vehicles of 10,001 pounds or more, or hazardous materials, in California. It needs proof of liability coverage, from $300,000 to $5 million depending on the vehicle and cargo, and proof of workers’ comp or a signed exemption. If the liability coverage lapses, the permit is suspended.
Sources: California DMV: Motor Carrier Permits. Checked October 24, 2026.
Everything else is the same.
The rest of the site applies here too: more than one carrier at every renewal, the policy read in plain English, and the same people answering the phone.
Talk to a licensed agent, not a phone tree.
Tell us what the business does and we'll come back with options from more than one carrier, explained in plain English.