An LLC applying for a CSLB contractor license must satisfy an additional financial requirement that does not apply to most other entities. That requirement is:

Explanation

§7071.19(a) makes liability insurance a condition of issuing, reinstating, reactivating or continuing an LLC's licence, on top of any bond this article requires, and it must answer damages from acts, errors or omissions arising out of the contracting services the company provides. §7071.19(b) sets the size: an aggregate limit of not less than $1,000,000 where five or fewer persons are listed as personnel of record, plus a further $100,000 for each person beyond five, and never more than $5,000,000 in any one designated period. The LLC separately files the $100,000 employee wage and benefit bond under §7071.6.5, which is a bond rather than insurance. That is why (b) is wrong twice over: what the statute requires is a policy, not money, and nothing is deposited with the board. (c) invents a headcount — the number of listed personnel only moves the insurance limit — and (d) invents a waiting period that no section imposes on any entity.