Business insurance for California contractors, property owners and small businesses

The Contractors State License Board requires a $25,000 contractor bond and either a workers' compensation policy or a signed exemption if you have no employees. Roofing (C-39), concrete (C-8), HVAC (C-20), asbestos abatement (C-22) and tree service (D-49) licensees must carry workers' comp even with no employees. Contractors licensed as an LLC must also carry liability insurance of at least $1 million.

The state requires it only for contractors licensed as an LLC. In practice most general contractors, property managers and commercial clients ask for a certificate of insurance before you start work, often with a $1 million per occurrence limit.

Yes. California requires every employer with one or more employees to carry workers' compensation, including part-time employees. Owners with no employees are usually exempt, except in the contractor trades the license board names.

Usually not fully. Personal auto policies often exclude or limit vehicles used mainly for business, vehicles titled to a business, and employees driving them. A commercial auto policy covers those uses and offers higher liability limits.

An association typically carries property coverage on the common areas, general liability, directors and officers liability, and a fidelity bond. Under the Davis-Stirling Act, owners are shielded from personal liability for common-area claims when the association carries at least $2 million in general liability (100 or fewer separate interests) or $3 million (more than 100). Volunteer directors get similar protection when the association carries at least $500,000 in directors and officers coverage, or $1 million if the development is not exclusively residential.

It covers the building itself, your liability if a tenant or visitor is hurt on the property, and usually the rent you lose while a covered loss is being repaired. It does not cover tenants' belongings. Tenants need their own renters policy for that.

A business owners policy, or BOP, combines general liability and commercial property coverage in one policy, and usually includes business income coverage. It is designed for small and mid-sized businesses and normally costs less than buying the coverages separately. It does not include workers' comp or commercial auto.

For a business: the business name, what you do, how long you have been operating, estimated annual revenue and payroll, and any claims in the last few years. For a property: the address, year built, number of units and any updates to the roof, plumbing or electrical. If you have a current policy, the declarations page speeds things up.