If you're running an electrical contracting business in California, understanding your insurance requirements isn't just about compliance—it's about protecting everything you've built. California has some of the strictest contractor insurance mandates in the country, and recent changes have made workers' compensation coverage mandatory for virtually all licensed contractors, even if you work solo.
Whether you're applying for your C-10 electrical contractor license or maintaining an existing one, here's what you need to know about California's insurance requirements in 2026 and beyond.
Understanding California's C-10 Electrical Contractor License
The C-10 electrical contractor license in California allows you to install, maintain, and repair electrical systems, wiring, fixtures, and equipment. To get this license, you need four years of journeyman-level experience, pass the trade and law exams, and meet specific insurance and bonding requirements.
Before the California Contractors State License Board (CSLB) issues your license, you must provide a $12,500 contractor bond and proof of workers' compensation insurance if you have employees. But here's where things have changed significantly in recent years.
The Big Change: SB 216 Workers' Compensation Mandate
California's SB 216 represents a major shift in contractor insurance requirements. Previously, only contractors with employees needed workers' compensation coverage. Now, virtually all licensed contractors—including solo electrical contractors—must carry workers' comp insurance to maintain their license.
The law was originally set to take full effect on January 1, 2026. However, SB 1455 postponed the final compliance deadline to January 1, 2028. That said, 2026 marks the start of full enforcement while the CSLB builds its verification system, so it's wise to get ahead of this requirement now rather than waiting until the last minute.
Your workers' comp certificate must be written by an insurance company licensed through the California Department of Insurance, with the CSLB listed as the Certificate Holder. If you don't maintain this coverage, your license will be suspended immediately. Any work you perform while suspended is considered unlicensed activity, which can result in serious disciplinary action.
The only contractors exempt from workers' comp requirements are joint ventures with no employees who file a certificate of exemption with the CSLB. If you operate as a sole proprietor with no employees, you'll need to submit a signed exemption form—but this exemption window is closing as the law phases in full compliance.
General Liability Insurance Requirements for Electrical Contractors
While general liability insurance isn't technically required by the CSLB to obtain your C-10 license, it's practically essential for running an electrical contracting business in California. Most clients—especially commercial property owners and general contractors—require you to carry general liability coverage before they'll hire you.
If your electrical contracting business is structured as an LLC, the requirements become stricter. All LLC licenses must carry liability insurance between $1 million and $5 million, depending on the number of personnel listed on the license. For LLCs with five or fewer personnel, the minimum requirement is $1 million in coverage. Larger operations need proportionally higher limits.
Industry best practice recommends carrying at least $1 million per occurrence and $2 million aggregate in general liability coverage. This protects your business against claims of bodily injury, property damage, and personal injury, and covers legal fees if a client sues you for work-related issues.
Additional Insurance Coverages to Consider
Beyond the mandatory requirements, smart electrical contractors carry several other types of coverage. Commercial auto insurance is essential if you drive a work vehicle, truck, or van to job sites. Your personal auto policy won't cover business use, and California requires proof of commercial auto insurance for any vehicle used for business purposes.
Tools and equipment coverage protects the thousands of dollars you've invested in specialty electrical tools, testing equipment, and materials. A Business Owner's Policy (BOP) bundles general liability and commercial property coverage together, often at a lower cost than purchasing them separately. For electrical contractors, this typically costs between $1,000 and $3,000 annually, depending on your revenue and coverage limits.
Professional liability insurance—also called errors and omissions coverage—protects you if a client claims your electrical work was faulty or didn't meet code requirements. This becomes particularly important on complex commercial projects where the stakes are high.
How to Get Started with Your Insurance Requirements
Start by contacting insurance providers who specialize in contractor coverage. They understand the C-10 license requirements and can package the policies you need. Get quotes from at least three providers to compare coverage and pricing. Make sure any workers' comp policy lists the CSLB as the Certificate Holder—this is non-negotiable.
When applying for or renewing your C-10 license, you'll submit your proof of insurance directly to the CSLB. Keep copies of all certificates of insurance, and set calendar reminders for renewal dates. Letting your coverage lapse—even for a day—can trigger an automatic license suspension.
Review your coverage annually as your business grows. Adding employees, taking on larger projects, or expanding into new service areas may require adjusting your policy limits. Your insurance agent can help you stay properly covered without overpaying for unnecessary coverage.
California's insurance requirements for electrical contractors are among the most comprehensive in the nation, but they exist to protect both you and your clients. By understanding what's required and maintaining proper coverage, you ensure your license stays active, your business stays protected, and you can focus on what you do best—delivering quality electrical work.
