San Diego Contractor Insurance for ADU Builders, Remodelers & Coastal Trades

Not by law, but nearly every roofer we work with carries it. General liability does not cover your own ladders, nail guns, or tear-off equipment, and tools coverage can help replace eligible losses from theft or damage.

It depends on your contracts. Many ADU projects only require $1 million, but multifamily, commercial, and high-end coastal projects often require more, which excess liability can provide.

General liability may cover third-party property damage and injuries caused by your HVAC work, such as a roof leak around a new unit. Your own employees’ injuries go through workers’ comp, and fixing your own workmanship is not covered.

Plumbers with employees must carry workers’ comp in California. Starting January 1, 2028, all CSLB licensees will need it, even without employees.

Every CSLB licensee needs a $25,000 contractor bond. LLC electricians also need a $100,000 worker bond, and public projects may require performance and payment bonds.

If you drive a work van or truck to job sites, commercial auto insurance is recommended. Personal auto coverage often stops short when a vehicle is used mostly for jobs.

Roofers handling tile and flat-roof repairs near the coast often consider general liability, workers’ compensation, commercial auto, and tools coverage. California C-39 roofing licensees must maintain workers’ compensation even without employees. Confirm roof-work exclusions, the CSLB bond, and any insurance limits stated in the project contract.

For ADU construction in occupied backyards, general liability and workers’ compensation where required are a starting point. Builder’s risk may insure the structure while work is underway; commercial auto and higher liability limits may also be needed. The builder should review subcontractor certificates and clarify which party purchases each policy.

An HVAC quote for heat-pump and cooling installations on small lots depends on annual revenue, payroll, claims, vehicle use, limits, and whether the business installs equipment or only services it. California C-20 HVAC licensees must carry workers’ compensation regardless of employee count. Compare quotes describing the same operations and deductibles.

General liability with completed-operations coverage may respond to eligible third-party damage that arises after trenching and plumbing connections for ADUs. Coverage depends on the cause, exclusions, and policy wording. It generally does not reimburse the contractor simply for replacing defective work.

Company-owned work vans used for new electrical service and panels for backyard units generally need insurance rated for their business use; personal policies may exclude some commercial operations. Check drivers, vehicle schedules, and coverage for hired or non-owned vehicles where relevant. Tools in the van usually need separate protection.

Contractors performing stucco, tile, paint, and flooring work on occupied properties often consider general liability, commercial auto for business vehicles, and tools coverage. Workers’ compensation is required when they have employees, subject to classification-specific CSLB rules. Check builder certificates and whether the policy covers occupied-property work.

General liability can address certain third-party injury and property damage claims from declared contracting operations, including eligible completed-operations losses. For ADUs and remodeling in occupied backyards, review contractual limits and any relevant exclusions. It does not replace workers’ compensation, commercial auto, or coverage for the contractor’s own equipment.

California employers generally must maintain workers’ compensation for employees. C-39 roofing, C-8 concrete, C-20 HVAC, C-22 asbestos abatement, and D-49 tree service licensees have classification-specific requirements even without employees. Under SB 1455, the broader requirement for all CSLB licensees is scheduled for January 1, 2028; confirm current exemptions with CSLB.

Commercial auto typically addresses covered accidents involving scheduled business vehicles traveling around San Diego and South County. Confirm how trailers, attached equipment, hired vehicles, and employees’ cars are treated; the policy does not automatically insure every tool transported inside a vehicle.

Excess or umbrella liability may be appropriate when owners, HOAs, or general contractors require limits above primary policies on an ADU or coastal home renovation. Ask which underlying policies are covered, what exclusions apply, and whether the additional limits satisfy the contract. Not every umbrella policy follows every underlying policy.

Tools and equipment coverage may help with eligible theft or covered accidental damage to tile saws, compact tools, ladders, and portable testing equipment. Check unattended-vehicle exclusions, storage conditions, deductibles, and item limits. Ordinary wear, deterioration, and some heat or moisture damage may be excluded.

A current California CSLB contractor license generally requires a $25,000 contractor license bond. LLC licensees also have a separate $100,000 employee/worker bond and liability insurance requirements. Certain qualifiers may require an additional bond, while public or private projects can require bid, performance, or payment bonds. Bond amounts are not the premiums paid.