The CGL insurance notice in California home improvement contracts
Explained simply
Your contract needs a short box that tells the homeowner about your liability insurance. It has a set title, and under it you pick the one sentence that is true for you: who insures you and their phone, that you have none, that you self-insure, or the LLC sentence.
If you write home improvement or service-and-repair contracts in California, each one has to tell the homeowner, in writing, where you stand on commercial general liability insurance. Here is how that notice works.
Building the notice into your contract
- Use the required heading"Commercial General Liability Insurance (CGL)" at the top.
- Pick the true statementInsured, not insured, self-insured, or the LLC statement.
- Add the insurer and phoneIf insured, name the company and a number to check it.
- Put it in or attach itAttached is fine if the contract says so.
- Refresh it at renewalThe notice must match coverage on the signing date.
The details · tap to open
What §7159 and §7159.10 ask for
A CGL heading, then the one statement that is true for you.
Business and Professions Code §7159 and §7159.10 require home improvement contracts and service-and-repair contracts to carry a notice headed "Commercial General Liability Insurance (CGL)". Under that heading goes the single statement that applies to you. There are four:
- You carry CGL. The notice names the insurance company and gives a phone number the homeowner can call to confirm coverage.
- You do not carry CGL.
- You are self-insured.
- The LLC statement. For an LLC licensee: you carry liability insurance or keep other security as the law requires, with the phone number of the insurer, trust company or bank so the homeowner can verify it.
You pick one. Not two, not a hedge between them. The notice can sit inside the contract, or be attached to it when the contract says it is attached.
Nothing here is legal advice. For the exact wording in your contract, go to the CSLB website or ask your own attorney.
Contracts that need it
Every home improvement and every service-and-repair contract.
| Contract | Examples of the work |
|---|---|
| Home improvement | Kitchen and bath remodels, room additions, reroofs, exterior paint, new flooring, fencing, yard work on a residence |
| Service and repair | Short calls: a burst line, a dead water heater, an AC that quit, a tripped panel |
Trades that run on service calls write a lot of these. Plumbers, HVAC contractors and electricians can sign several small contracts a day, and every one needs the notice. A general contractor running home remodels needs it on each home improvement contract too.
The easy way to never miss it: build the notice into your contract template once, so every new contract carries it.
Builders of single-family homes: §7164
Home builders disclose in writing whether they carry CGL.
Single-family home construction has its own rule. Under B&P §7164, a builder must disclose in writing whether it carries commercial general liability insurance.
It follows the same logic as the home improvement notice: the person paying for the house finds out, on paper, whether a GL policy stands behind the work.
If you do both remodels and new homes, look closely at your policy. Some programs limit or exclude new residential construction, and a disclosure that says you carry CGL is only as useful as what that policy actually covers. More in GL exclusions for contractors.
What you need on hand
An active policy, the insurer's name and phone, and your dates.
If you carry GL, the notice takes a minute once you have these:
- A policy in force on the contract date. The notice describes coverage that exists when the homeowner signs.
- The insurer's name. The insurance company listed on your declarations page. Your agent's name does not go here.
- A phone number for that insurer. One the homeowner can call to confirm you are covered. Not your own office line.
- Your policy dates. So you know when the notice in your template needs checking.
When you are covered through CalRisk Insurance Center, your agent gives you the insurer name and phone number to drop into your template.
Notice or certificate?
The notice is for the homeowner; the certificate is for GCs.
The two get confused because both are about your insurance. They do different jobs:
| Contract notice | Certificate of insurance | |
|---|---|---|
| Where it appears | In, or attached to, the home improvement or service-and-repair contract | A separate one-page form, usually ACORD 25 |
| Who reads it | The homeowner | GCs, property managers, commercial owners |
| What it says | Your CGL status: insurer and phone, none, self-insured, or the LLC statement | Policies, dates, limits and the certificate holder |
A GC who wants proof, or wants to be added to your policy, needs a certificate and possibly an endorsement. See the certificate of insurance guide.
To keep the notice right: review it at every renewal, change it if your insurer changes, confirm the policy is active on each signing date, and if you hold more than one license, use the policy that matches the license on that contract.
Get covered, then fill in the notice
A GL policy lets your notice name an insurer.
Unless your license is an LLC, no law makes you carry GL, though CSLB strongly recommends it. The notice puts your answer right in front of the homeowner, and "we carry CGL" with a real insurer and phone number reads very differently from "we do not."
- Enter your CSLB license number and answer about a minute of questions.
- Compare quotes from A-rated programs at $1M per occurrence and $2M aggregate, each with its deductible and what it includes and excludes.
- Tap "Submit for approval" on one. A licensed agent completes it and emails the final quote to sign. Nothing is bound until you sign.
- Once covered, your agent sends the insurer name and phone for your contracts.
Want to understand price first? See general liability cost in California. Questions: (877) 940-4313.
Common questions
What insurance notice is required in a California home improvement contract?
B&P §7159 and §7159.10 require a notice headed "Commercial General Liability Insurance (CGL)" in home improvement and service-and-repair contracts, followed by the one statement that is true for you.
What are the options for the CGL statement?
That you carry CGL, with the insurer's name and phone number; that you do not carry CGL; that you are self-insured; or, for an LLC, that you carry the required liability insurance or other security, with a phone number to verify it.
Can the CGL notice be attached instead of written into the contract?
Yes. It can be attached, as long as the contract states that it is attached.
Do plumbers and HVAC techs need the notice on service calls?
Yes. The notice applies to service-and-repair contracts as well as home improvement contracts, so every short repair contract needs it.
What does B&P 7164 require from home builders?
Builders of single-family homes must disclose in writing whether they carry commercial general liability insurance.
Is the contract notice the same as a certificate of insurance?
No. The notice goes in the homeowner's contract and states your CGL status. A certificate is a separate form, usually for GCs, listing policies, dates and limits.
General information about California rules, not legal advice. Check your own licence with CSLB. Coverage is subject to the policy's terms, conditions and exclusions, and to the insurance company's approval. Some licence types are quoted by an agent instead of online. Updated 2026-10-25.