Soft-Story Retrofit Work in LA: What Insurance Do You Need?
LA retrofit contractors need general liability with completed operations, workers comp, and often higher limits. Here is why the ten-year defect window makes this work different.
Contractors doing soft-story retrofit work in Los Angeles need general liability that explicitly includes completed operations, workers’ compensation for any crew, and in many cases limits above the standard $1M/$2M. Expect roughly $1,800 to $4,200 per year for general liability on structural retrofit work. The reason limits run higher is the ten-year tail on California defect claims.
Why LA Has So Much Retrofit Work
Los Angeles adopted a mandatory retrofit ordinance covering soft-story wood-frame buildings and non-ductile concrete buildings. Other cities in the county, including Santa Monica, have their own retrofit requirements. That has created years of steady structural work across the region for contractors equipped to do it.
The Ten-Year Problem
California’s statute of repose for latent construction defects runs ten years from substantial completion under Code of Civil Procedure §337.15. Structural work is precisely the category where a defect surfaces years later rather than at final inspection. The policy that responds is generally the one in force when the claim is made, so a contractor who lets coverage lapse between projects can be exposed on work finished years earlier.
What Retrofit Contractors Should Carry
- General liability with completed operations, $1M/$2M minimum and often a $5M umbrella
- Workers’ compensation, required once you have any employee
- Commercial auto for trucks and equipment transport
- Tools and equipment coverage for shoring, jacks, and structural hardware
- A CSLB license bond to keep the license active
What Building Owners Will Ask For
Owners and property managers on retrofit projects typically require a certificate naming them as additional insured, and larger multifamily owners often require waiver of subrogation language as well. Read the insurance exhibit before bidding, because adding endorsements after award costs more than pricing them in.
Sources
- Los Angeles Department of Building and Safety — ladbs.org
- California Code of Civil Procedure §337.15 — leginfo.legislature.ca.gov
- Contractors State License Board — cslb.ca.gov