Contractors Insurance Requirements by State: AZ, CA, NV, TX

If you’re a contractor working in more than one state, the rules change every time you cross a border. Here’s what you actually need to keep your license active in Arizona, California, Nevada, and Texas in 2026.

California (CSLB)

• Contractor License Bond: $25,000 (required for all licensed contractors)
• Workers’ Compensation: Required for ALL C-39 roofing contractors, even with no employees
• General Liability: Not required by law, but required by 99% of GCs and city permits
• Disability Insurance: Required if you have employees

Arizona (ROC)

• License Bond: $4,250 to $25,000 depending on license class and volume
• Workers’ Comp: Required if you have ANY employees (including part-time)
• General Liability: Not legally required, but required for ROC dual-license holders and most GCs

Nevada (NSCB)

• License Bond: $1,000 to $500,000 based on license limit
• Workers’ Comp: Required for all employees, including spouses and family members
• General Liability: Not required by NSCB, but required by most municipalities for permits

Texas

Texas is unique — there is NO state-level general contractor license. But that doesn’t mean no insurance. Most Texas counties and cities require:

• General Liability: Required for almost all city permits
• Workers’ Comp: Texas is the only state that does NOT require workers comp for private employers — but it’s strongly recommended (and required by most GCs)
• Trade-specific licenses (electrical, plumbing, HVAC) DO require state bonds and insurance

What Most Contractors Get Wrong

A surety bond is NOT insurance for you. It’s a financial guarantee to the state and to your customers. If a claim is paid out from your bond, YOU have to pay it back. You still need general liability and workers comp to protect your own business.