Conquer California Contractor Law 2026 – Build Your Future with Confidence!

General liability insurance is not mandatory for California contractors because the state law does not impose a requirement for contractors to carry this type of insurance. While having general liability insurance can provide significant protection for contractors against claims related to property damage or bodily injury caused by their work, California has chosen not to make it a legal requirement. This allows contractors to operate without this specific insurance, although they may choose to obtain it for their own risk management purposes.

The reasoning behind not requiring general liability insurance involves the recognition that different contracting businesses face varying levels of risk, and some contractors may be able to manage their risks through other means. Contractors often have flexibility in determining what types of insurance they choose to carry based on their business model, size, and the specific nature of their work.