An independent insurance broker will do it for free, usually in a day or two. Send the insurance and indemnity sections, and the broker tells you what you already carry, what you would need to add, and what to put in your bid price. Who this is for: California contractors who need the insurance cost before the bid is due.
The short version
- Brokers review bids free, because the review is how they learn what to quote later.
- You usually do not buy the insurance before you bid, but you need proof before you start.
- California public bids need security of at least 10 percent, plus state registration that requires current workers comp.
- Price the insurance in: higher limits, an umbrella, the extra wording, and extra state tax if a specialty insurer writes it.
- Ask the reviewer to flag anything copied from a template written for a bigger company.
Who reviews a California bid's insurance section for free?
| Reviewer | Free? | Good for | Watch out |
|---|---|---|---|
| Independent broker | Yes | Pricing the gaps and placing coverage if you win | Pick one that works with California contractors |
| Your insurer's own agent | Yes | Confirming what their own policy includes | Cannot say what other insurers would charge |
| The owner's or general contractor's bid desk | Yes | Explaining the exhibit | Will not advise you on your own coverage |
| Construction attorney | No | Indemnity wording (a promise to cover someone else's losses) | Worth it on large jobs, not for reading limits |
The national version is here. The rest of this page is California.
What does a good bid review check?
- The policy list and limits. General liability, workers comp, auto, umbrella, sometimes pollution.
- The extra wording. Adding your customer to your liability policy (additional insured), during the job and after it is finished. Your policy paying first (primary and noncontributory). Your insurer agreeing not to chase your customer for money it paid (waiver of subrogation).
- A limit that resets for each job. That is a change to your general liability policy. No umbrella supplies one, so price it separately.
- Bid bond versus insurance. A bid bond is a promise to sign the contract if you win. It comes from a surety.
- What you can push back on. Since 2013, Civil Code 2782.05 says a commercial subcontract cannot make you cover the general contractor's own active negligence.
What is different about a California public works bid?
| Item | California rule | What it means for your bid |
|---|---|---|
| Bid security | At least 10 percent of the bid, as cash, a cashier's check, or a bidder's bond | A bid without it is not considered. Line up the bond a week ahead. |
| Prevailing wage | Workers on public works over $1,000 get the state prevailing rate | Higher payroll, higher workers comp. Price it. |
| State registration | Required before you can bid, be listed on a bid, or work on a public job. You need current workers comp and an active license. Jobs of $25,000 or less are exempt. | Your workers comp must be active on bid day, not just on start day. |
| License board proof | With employees, your policy must be on file with the Contractors State License Board (CSLB) or the license is suspended. With no employees you may file an exemption instead, unless your license is C-8 concrete, C-20 heating and cooling, C-22 asbestos, C-39 roofing or D-49 tree service, or a responsible managing employee qualifies it. | A lapsed policy, or an exemption you were not entitled to, knocks you out. |
How do I put the insurance cost into my California bid?
Ask for a number for each gap, then add it to your overhead line. These are national illustrative ranges, not California rates. Trade, payroll, limits and claims history move them.
| Gap | Illustrative cost to close it |
|---|---|
| Adding the general contractor for your ongoing work | Often no charge with blanket wording, otherwise $50 to $300 |
| Adding the public owner, and keeping the protection after the job is finished | Usually separate endorsements, $50 to $300 each |
| A limit that resets for this job, on your general liability policy | Roughly $250 to $600 |
| Waiver on workers comp for this job | About 2 to 5 percent of that job's workers comp premium |
| $1,000,000 umbrella | Roughly $700 to $3,000 a year |
| $5,000,000 umbrella | Roughly $3,500 to $14,000 a year, fewer insurers offer it |
| $1,000,000 pollution policy for one project | Roughly $2,000 to $6,000 |
| Specialty insurer add-on | California adds a 3 percent state tax and a 0.18 percent stamping fee. That arithmetic is about $318 on a $10,000 premium. |
Blanket wording reaches the party you signed with, for work in progress. A public owner above your customer, and protection after the job is finished, come on their own pages. See how to price insurance into a bid.
Do I have to buy the insurance before I bid in California?
Usually no. Most bids want the coverage before you start work, not before you bid. Some owners want a broker letter saying it is available to you if you win. On public work you do need active workers comp, a current license, and state registration on bid day. If you won already, see who can help you meet a California contract's requirements.
What this looks like in real life
Illustrative example. It is typical of what we see and is not a promise of how any specific situation would be handled.
The setup: An electrical contractor in Sacramento bids a $1,600,000 school modernization. The package asks for 10 percent bid security, $2,000,000 general liability with a limit that resets for this job, a $5,000,000 umbrella, and $1,000,000 of pollution coverage.
What went wrong: The owner bid from her usual overhead number without reading the insurance exhibit. She carried a $1,000,000 umbrella and no pollution policy. She won.
What it cost: Illustrative math: the bigger umbrella cost about $7,500 more a year, the resetting limit on her general liability policy about $400, and a one project pollution policy about $3,000. Roughly $10,900 came out of her margin.
The fix: A free broker review would have taken two days and produced every number. Her next bid priced insurance as its own line, and she still won.
Frequently asked questions
Q: Who can review my construction bid's insurance requirements for free in California?
An independent commercial insurance broker who works with California contractors. Send the insurance and indemnity sections. The broker compares them to your policies and prices the gaps, usually within a day or two, free.
Q: Do I need to buy the insurance before I submit my bid?
Usually not. You need the coverage in place, with proof, before you start work. Some owners ask for a broker letter saying the coverage is available. On public work you do need active workers comp and state registration on bid day.
Q: Do I need to register with the state to bid public work in California?
Yes, for most public works. Contractors and subs register with the Department of Industrial Relations before bidding or working. Registration needs current workers comp and an active CSLB license. Projects of $25,000 or less are exempt.
Q: I am subcontracting under someone else on a public job. Do these rules hit me too?
Yes. Subcontractors on California public works register with the Department of Industrial Relations, pay prevailing wage, and carry current workers comp, the same as the general contractor. You do not post the bid security.
Q: How long does a bid insurance review take?
Usually a day or two, once the broker has the insurance exhibit and your current policy pages. Complex public packages take longer. Send it the day you download the bid documents.
Q: What if the bid requires more insurance than I carry?
You can still compete. The review tells you what the extra coverage costs, so you can put it in your price. Most gaps close within two weeks of award.
How Morrow helps
Morrow is a licensed independent commercial insurance brokerage that works with contractors and trades every day. Reviewing the insurance section of a California bid before the due date, and pricing every gap, is work we do for contractors every week.
- Free contract review. Send us the contract or bid documents and we mark up the insurance section in plain English, whether or not you buy anything from us.
- Free, instant certificates. Clients issue their own certificates of insurance online in about a minute, any hour, any day, at no charge.
- Markets you cannot reach online. One application, shopped across many insurance companies for general liability, workers comp, auto, umbrella, and pollution coverage.
One more thing. This article is general information and is not legal advice or a statement of coverage. Your contract and your policy wording control in every case. Requirements vary by customer, by state, and by insurance company, so have a licensed advisor review your own contract and your own policy before relying on any of it.
Last updated: Reviewed by the Morrow commercial lines team. Last updated September 2026.