Insurance for California landscape license contractors
California business insurance can help protect your business from financial risk. In addition, clients may ask whether you have adequate insurance before hiring you for a landscaping project.
The following types of landscaping insurance are available for contractors in California.
General liability insurance
California does not require all landscaping contractors to carry general liability insurance to obtain a license, but licensed contractor LLCs must carry coverage that meets minimum standards ($1 million aggregate limit), and many clients require proof of insurance before hiring.
General liability insurance in California can help provide coverage for damage to someone else’s property as well as accidents that injure someone other than you or your employees.
Workers’ compensation insurance
California requires landscaping contractors with employees to carry workers’ compensation insurance. In addition, licensed contractor LLCs must carry workers’ comp coverage even if they don’t have employees, while sole proprietors without employees may be able to file a workers’ compensation exemption with the CSLB.
Workers’ compensation insurance can help cover medical expenses and lost wages for employees who are injured on the job and may help protect your business from related costs.
Commercial auto insurance
If you use a vehicle for work, commercial auto insurance helps provide coverage for related expenses, like property damage and medical expenses after an accident.
Tools and equipment insurance
Tools and equipment insurance can help pay for repair and replacement costs for damaged or stolen work gear.
Commercial property insurance
If you own or lease any property for your landscaping business, including storage space, commercial property insurance can help cover costs related to damage or vandalism.
California landscaping contractor exams
Like all contractors in the state, landscaping contractors must pass two exams to obtain a license: a law and business exam and a trade exam.
The law and business exam will test you on business management and construction law. This exam includes the following sections:
- Business organization and licensing
- Business finances
- Employment requirements
- Insurance and liens
- Contract requirements and execution
- Public works
- Safety
The trade exam focuses on landscaping skills and abilities. It covers the following landscaping categories:
- Planning and estimating
- Construction preparation
- Hardscape installation
- Drainage, irrigation, lighting and plant installation
- Maintenance and repair
- Safety
Both of these are multiple-choice, closed-book exams. While the California contractor licensing board is not affiliated with schools or application preparation courses, it offers helpful study guides with suggested resources to review before the test:
How much does a California landscaping license cost?
The California contractor licensing board requires the following fees for landscaping licenses:
- License application: $450
- License fee: $200
You’ll also submit to having fingerprints taken at a Live Scan site before receiving your license. The fees for this process total around $32.
To obtain a landscaping license, CA contractors must have a $25,000 bond written by a surety company licensed through the California Department of Insurance. However, you must file a $100,000 bond if you’re applying for a license as a limited liability company (LLC). The bond covers possible damage, license law violations and unpaid wages for employees.
