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Roofing as an LLC: The $100,000 Worker Bond
The CSLB treats an LLC license differently. The standard $25,000 bond stays, a $100,000 employee/worker bond joins it, and $1,000,000 aggregate general liability becomes a matter of statute — not just something a GC asks for. Here’s the whole stack, straight.
One Entity Choice, Two Extra Requirements
Nothing about the LLC rules replaces the standard requirements. They stack on top.
Every active CSLB licensee — sole proprietor, corporation, or LLC — carries the $25,000 contractor license bond. When the licensed entity is an LLC, the CSLB adds two more requirements on top of it.
First, a $100,000 employee/worker bond. It exists to protect the LLC’s workers — and like every bond on this site, $100,000 is the penalty amount the bond covers, never what it costs you. The CSLB requires it on file only when the licensed entity is an LLC; sole props and corporations skip it entirely.
Second, general liability with a $1,000,000 aggregate limit — by statute. For sole props and corporations, general liability is what jobsites and GCs demand by contract. For an LLC, California law writes the requirement and the minimum limit into the license itself.
Sole Prop and Corp vs. LLC: What Each Must Carry
Same trade, same license classification — a different entity type changes the list.
| Requirement | Sole prop / corp | LLC |
|---|---|---|
| $25,000 license bond | Sole prop / corp: required — every active licensee | LLC: required — every active licensee |
| $100,000 worker bond | Sole prop / corp: not required | LLC: required — LLC licensees only |
| General liability | Sole prop / corp: not a CSLB requirement — most GCs and jobsites require it by contract | LLC: required by statute — $1M aggregate minimum |
| Workers’ comp | Sole prop / corp: required — the C-39 rule applies even with zero employees | LLC: required — entity type doesn’t change the C-39 comp rule |
Thinking of converting to an LLC?
The liability protection may be worth it — but the insurance stack changes the math. The $100,000 worker bond and the statutory $1M aggregate general liability arrive with the entity change, and roofing GL is already a hard placement. Worth pricing the full stack before the conversion, not after. Talk it through with a producer →
What Trips LLC Licensees
Three misses we see on LLC licenses — each one avoidable, each one a license problem if ignored.
- Bond amounts must match the entity type on file. If CSLB records show an LLC, the $25,000 bond alone doesn’t satisfy the rules — the $100,000 worker bond has to be on file too. Converting the entity without updating the bonds is the classic miss.
- The statutory GL minimum is aggregate. The law sets a $1,000,000 aggregate floor — a certificate showing only a per-occurrence figure, or an aggregate written below the floor, doesn’t satisfy it. We check how the limit is written, not just that a number appears.
- Letting either lapse has license consequences. A lapsed worker bond or lapsed statutory GL is a license problem, not just an insurance problem. Calendar both renewal dates — or tell us your renewal month and we’ll send a heads-up before it.
The LLC Stack Is Bigger. The Answer Is Still Straight.
Four taps, a market benchmark computed in the page before any form asks who you are, and an honest verdict — including “stay put” if that’s the truth.
This is a market benchmark, not a quote or offer of insurance — actual premiums are determined by carriers upon application. Aster National Insurance Group · CA Lic #0N10039.