Question 1

When is WC required in California?

Accepted Answer

WC is required from the moment you hire your first employee in California — including part-time, temporary, and seasonal workers. Sole proprietors and corporate officers may be excluded but must formally request exclusion.

Question 2

What is the CSLB contractor bond requirement?

Accepted Answer

The California Contractors State License Board (CSLB) requires all licensed contractors to maintain a $25,000 contractor license bond. This is separate from insurance — you must carry both. Failure to maintain the bond results in license suspension.

Question 3

What are the penalties for no WC in California?

Accepted Answer

Operating without required WC in California is a criminal misdemeanor. Penalties include fines up to $10,000, stop-work orders, personal liability for all employee injury costs, and potential imprisonment for repeat violations.

Question 4

What are California's auto insurance minimums?

Accepted Answer

As of January 1, 2025, California's minimum auto liability limits are $30,000/$60,000/$15,000. Commercial vehicles have higher minimums based on classification and cargo type under CDMV and federal FMCSA rules.

Question 5

Does California require professional liability insurance?

Accepted Answer

California does not have a blanket professional liability mandate, but specific professions require coverage: licensed contractors (available via CSLB), CPAs (CPABO), real estate agents (DRE requirements). Check your specific licensing board.

California Business Insurance Requirements 2026: Complete Legal Guide

California Business Insurance Requirements at a Glance

Workers' Comp Threshold

Commercial Auto Minimums

Contractor Bonds

Regulator

Workers' Compensation in California

Non-Compliance Penalties

Contractor Licensing & Bond Requirements

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