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Artisan contractor insurance in California and Texas: what you need to get licensed, win jobs and stay covered
Short answer: in California, every CSLB license needs a $25,000 contractor's bond, workers' comp as soon as you hire anyone, and workers' comp even with no employees if you hold a C-8, C-20 (HVAC), C-22, C-39 (roofing) or D-49 license. LLC licensees also need at least $1 million in liability insurance. In Texas, state-licensed electricians, HVAC contractors and master plumbers must show liability insurance. Workers' comp is optional for most private employers, but many GCs require it.
The license is the first hurdle. The second is the general contractor or property manager who wants a certificate before you start. If your policy doesn't match what the state or the contract asks for, the job waits. Here's what trade contractors in the Inland Empire and Texas actually need.
What is an artisan contractor?
"Artisan contractor" is an insurance term, not a license type. Insurers use it for small trade contractors who do hands-on work with a small crew: plumbers, electricians, HVAC, painters, handymen, landscapers, roofers, and flooring, drywall and cabinet installers. Pricing is driven by your trade, payroll, revenue and type of work. A painter and a roofer with the same revenue get very different quotes, and some carriers won't write certain trades at all. As an independent agency, we compare carriers instead of forcing one fit.
What does California require to get and keep a CSLB license?
- Contractor's bond: $25,000. Every active license needs one. The amount went up from $15,000 on January 1, 2023. In some cases, a separate $25,000 bond of qualifying individual is also required. See CSLB bond requirements.
- Workers' comp if you have employees. California law requires it "even if they have only one employee." If you've filed an exemption and then hire, CSLB must get proof of coverage within 90 days.
- Workers' comp with no employees for five classifications. Active C-8 Concrete, C-20 HVAC, C-22 Asbestos Abatement, C-39 Roofing and C-61/D-49 Tree Service licensees must carry workers' comp whether or not they have employees. See CSLB workers' compensation requirements.
- Workers' comp for all licensees is coming. Under current law, every licensee must carry workers' comp, with or without employees, starting January 1, 2028.
- LLC liability insurance. LLC licensees need liability insurance with a limit of at least $1 million if five or fewer people are listed on the license, plus $100,000 for each additional person, up to $5 million. LLCs also need a $100,000 employee/worker bond on top of the contractor's bond.
- General liability disclosure. Most licensees aren't required to carry general liability, but home improvement contractors must state in writing, with the bid and contract, whether they carry it.
What does Texas require?
Texas doesn't have a statewide general contractor license like California's CSLB license. Certain trades are licensed by the state, and three require liability insurance:
| Texas license | Regulator | Minimum liability insurance |
|---|---|---|
| Electrical contractor | TDLR | $300,000 per occurrence, $600,000 aggregate, $300,000 products and completed operations |
| Air conditioning and refrigeration contractor, Class A | TDLR | $300,000 per occurrence, $600,000 aggregate, $300,000 products and completed operations |
| Air conditioning and refrigeration contractor, Class B | TDLR | $100,000 per occurrence, $200,000 aggregate, $100,000 products and completed operations |
| Responsible Master Plumber | Texas State Board of Plumbing Examiners | At least $300,000 commercial general liability |
Electrical contractors also have to show TDLR one of three things for workers' comp: a policy, a self-insurance certificate, or a statement that they've elected not to carry it. See TDLR electrical contractor license requirements.
On workers' comp, the Texas Department of Insurance says plainly: "Texas doesn't require most private employers to have workers' compensation." Employers who opt out must file an annual notice with the state, post notices and tell new hires in writing. On a government contract, you must cover employees on that project. See TDI's workers' compensation guide.
The law is only half of it. Many Texas general contractors won't let a sub on site without workers' comp.
California vs Texas: side by side
| Requirement | California | Texas |
|---|---|---|
| Statewide contractor license | Yes, CSLB license by classification | No general license; specific trades licensed by the state |
| License bond | $25,000 contractor's bond | Not part of the state license requirements above |
| Workers' comp with employees | Required, even for one employee | Optional for most private employers; required on government contracts |
| Workers' comp with no employees | Required for C-8, C-20, C-22, C-39, D-49; all licensees starting January 1, 2028 | Not required by the state |
| Liability insurance to be licensed | Required for LLC licensees ($1 million and up) | Required for electrical, HVAC and master plumber licenses |
Which coverages does an artisan contractor need?
- General liability: pays for injuries and property damage you cause to others. Watch two numbers. The per-occurrence limit is the most the policy pays for one claim. The aggregate is the most it pays for all claims in the policy year. A $1,000,000 / $2,000,000 policy pays up to $1 million per claim and $2 million total.
- Commercial auto: for work trucks and vans. A personal auto policy may not cover business use, a vehicle titled to the business or employee drivers.
- Tools and equipment (inland marine): covers your tools and equipment on the job, in transit or in the truck. General liability doesn't.
- Workers' comp: pays medical bills and lost wages for employees hurt on the job.
- Contractor's bond: in California, the $25,000 license bond. A bond protects your customers, not you. If the surety pays a claim, it expects you to pay it back.
- Umbrella: adds limits above your general liability, auto and employer's liability. The usual fix when a contract asks for higher limits.
What do general contractors ask for on a certificate?
Most subcontracts ask for three things: additional insured status for the GC or owner, a waiver of subrogation so your insurer can't recover from them after a claim, and primary and non-contributory wording so your policy pays first. Each has to be on the policy, usually by endorsement, before the certificate can show it. Here's more on how certificates of insurance work. At Redline, most standard certificates go out the same business day.
A real example
A two-person HVAC company in Rialto: the owner holds a C-20 license through an LLC, has one employee tech, runs two vans and wants to sub for a local general contractor.
- CSLB: the $25,000 contractor's bond, plus the $100,000 LLC employee/worker bond.
- Workers' comp: required twice over, once for having an employee and once for holding a C-20.
- LLC liability: at least $1 million, since fewer than six people are on the license.
- The GC: general liability, commercial auto and workers' comp on a certificate, with additional insured, waiver of subrogation and primary and non-contributory wording.
- The owner: commercial auto on both vans and inland marine for tools.
Price depends on payroll, revenue, vehicles and loss history, so we quote with your numbers. Carriers we work with for small contractors include biBERK and Berkshire Hathaway Homestate Companies (BHHC), plus others.
What should I have ready before I call?
- License number and classification (CSLB, TDLR or TSBPE), or where your application stands
- Business name and entity type (sole owner, LLC, corporation)
- Annual revenue and payroll, and how many employees
- What work you do, and the split between residential and commercial
- VINs, drivers and license numbers for work vehicles
- A list of tools and equipment with rough values
- Current policies and recent claims
- The insurance section of any contract you're about to sign
Frequently asked questions
How much is the California contractor bond?
The CSLB contractor's bond is $25,000 for every active license. It increased from $15,000 on January 1, 2023. LLC licensees also need a separate $100,000 employee/worker bond.
Do California roofers need workers' comp if they have no employees?
Yes. Active C-39 roofing licensees must carry workers' compensation whether or not they have employees. The same rule applies to C-8 concrete, C-20 HVAC, C-22 asbestos abatement and D-49 tree service licensees.
Does California require general liability insurance for contractors?
Not for most licensees. LLC licensees must carry at least $1 million in liability insurance, and home improvement contractors must disclose in writing whether they carry it. Most general contractors will ask for it anyway.
Is workers' comp required in Texas?
Texas does not require most private employers to carry workers' compensation. Employers who contract with government entities must cover employees working on that project, and many general contractors require it in their subcontracts.
What insurance does a Texas electrical contractor license require?
TDLR requires at least $300,000 per occurrence, $600,000 aggregate and $300,000 products and completed operations in liability coverage, plus proof of workers' comp, self-insurance or a statement electing not to carry it.