A licensed limited liability company (LLC) contractor in California is required to carry a separate liability insurance policy intended to compensate employees and workers injured by the LLC's actions. What is the minimum aggregate amount of this policy?
Explanation
B&P §7071.19 requires an LLC licensee to carry liability insurance with an aggregate limit of at least $1,000,000 where five or fewer persons are listed on the license, plus $100,000 for each additional listed person, capped at $5,000,000. (a) and (c) state flat figures and miss the scaling, which is the whole design of the section. (d) inverts it into a per-person minimum with no floor. None of these should be confused with the separate $100,000 LLC worker bond under §7071.6.5, which answers wage and fringe-benefit claims rather than injury liability.
Law Reference: Bus. & Prof. Code §7071.19This topic, taught in full in the CSLB Law & Business guide. CSLB Law & Business — Complete Study Guide (2026) — PDF + EPUB, $24.99 · 14-day refund →
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