California Carpenter Insurance: C-5, C-6, and the Rules That Depend on Your Entity
California splits carpentry into two licenses, then applies different insurance rules based on how the business is organized. C-5 covers framing and rough carpentry. C-6 covers cabinet, millwork, and finish work. An LLC framer and a sole proprietor framer doing identical work face different mandates. An LLC needs at least $1 million of liability and a $100,000 employee bond. Sole props and corporations face no state GL mandate. Workers comp for all licensees moves to January 1, 2028. Below we cover the license split, the entity trap, and how we build a carpenter program for California work.
C-5 or C-6: the state decides what kind of carpenter you are
The Contractors State License Board licenses framing and rough carpentry under C-5. It licenses cabinet, millwork, and finish carpentry under C-6. C-5 covers form work, framing, subflooring, siding, roof decking, trusses, and sheathing. C-6 covers fabricating and installing cabinets, casing, trim, and other finish work. The classifications live in Title 16 of the California Code of Regulations. The CSLB license threshold is famously low. Work valued at $500 or more in labor and materials requires a license. Insurance follows the classification. A C-6 cabinet shop rates like light manufacturing with an installation exposure. A C-5 framer rates like structural construction, with the workers comp cost to match. Holding both classes is common. If you do, your carrier needs the revenue split between them, because the blended rate depends on it.
The entity-based insurance mandate most guides miss
California does not require general liability for most contractors. Sole proprietors and corporations holding a C-5 or C-6 have no GL mandate at all. LLC licensees are the exception. An LLC must carry at least $1 million of liability coverage, scaling by $100,000 per employee up to $5 million. It also posts a $100,000 employee bond on top of the standard $25,000 contractor license bond required by B&P Code 7071.6. SB 607 raised that bond from $15,000 in 2023. On workers comp, the universal mandate story keeps moving. SB 216 was set to require comp for every licensee regardless of employees. SB 1455 delayed that universal requirement to January 1, 2028. Carpentry classes were never in the early phase-in group. With employees today, comp is already mandatory. Without them, your deadline is 2028, and it is worth planning for now.
Building a carpenter program for California work
California carpentry right now is heavy on rebuild framing in fire-affected counties, ADU construction, and remodels of housing stock that predates modern code. Older homes mean crawl spaces, hidden wiring surprises, and change orders. All of that raises the odds of a property damage claim mid-project. GC contracts in California are also the most demanding we see. Additional insured, primary and noncontributory, and waiver of subrogation wording are table stakes on any tract or commercial job. Certificate requests come fast, and slow paper costs you mobilization dates. We build California carpenters general liability at $1 million per occurrence minimum, comp with clean class splits between shop and field payroll, commercial auto, and a tools floater. The full stack is explained in our carpenter insurance guide.
Frequently asked questions
Does California require general liability insurance for carpenters?
Only for LLC licensees, who must carry at least $1 million. Sole proprietors and corporations face no GL mandate, though GCs and clients require it in practice. Classification details are on the CSLB C-5 classification page.
Do I need both C-5 and C-6?
If you frame and also fabricate or install finish work, yes. Each classification covers its own scope. Working outside your class risks both discipline and claim disputes.
Whether you are a C-5 framer chasing rebuild work or a C-6 shop shipping cabinets statewide, we can structure the program around your entity and your classes. Start your California quote here, or see our California insurance page.
