A licensed LLC contractor must carry liability insurance whose aggregate limit rises with the number of persons on its license record. What is the floor?
Explanation
B&P §7071.19(b)(1) sets the aggregate limit at not less than $1,000,000 for an LLC licensee with five or fewer persons listed on its personnel of record, and §7071.19(b)(2) adds $100,000 of insurance for each additional listed person, capped at $5,000,000 in any one designated period. (b) is that $100,000 per-person increment mistaken for the floor. (a) and (d) are figures the section never uses. Keep this apart from the LLC's other requirement: the $100,000 wage and fringe-benefit surety bond under §7071.6.5, which protects employees rather than third parties injured by the work.
Law Reference: B&P Code §7071.19(b)This 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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