What type of insurance is typically required for contractors in California?

The correct answer is general liability insurance, which is crucial for contractors in California. This type of insurance provides protection against claims of bodily injury or property damage that may arise during the course of performing construction-related work. It ensures that if a third party suffers injury or damage as a result of the contractor’s operations, the insurance can cover the legal costs and any settlements or judgments that result from such claims.

Contractors face various risks, including accidents on the job site, damages to the property they are working on, and claims made by clients or the public. General liability insurance, therefore, acts as a safeguard for the contractor's financial stability by covering these potential liabilities.

While workers’ compensation insurance is indeed important and often required by law to cover employee injuries, it is not the primary type of insurance focused on protecting the contractor from external claims. Health insurance is generally provided as a benefit to employees but is not specifically tied to contractor operations, and property insurance focuses on covering physical assets rather than liabilities. Therefore, general liability insurance is the most relevant and typically required insurance for contractors in California.