What is a Certificate of Insurance (COI)?

A Certificate of Insurance (COI) is a document issued by an insurance company that verifies a vendor or subcontractor has active insurance coverage. General contractors and property managers require COIs to confirm vendors carry adequate general liability, workers compensation, and other required policies before allowing them on a job site.

How does VendorShield automate COI tracking?

VendorShield uses AI to analyze uploaded COI PDFs instantly. It extracts policy details including coverage types, limits, effective dates, and insurer information. The system automatically scores each COI for risk, flags coverage gaps against your requirements, and sends alerts before policies expire.

Can vendors upload their own COIs?

Yes. VendorShield provides each vendor with a self-serve portal link. Vendors can upload their COIs directly without needing an account. This eliminates the back-and-forth email chains that typically slow down compliance.

How much does VendorShield cost?

VendorShield starts at $499/month for the Starter plan (up to 25 vendors). The Pro plan is $799/month with unlimited vendors and custom compliance rules. Enterprise pricing is custom with multi-organization support, SSO, and dedicated support. All plans include a 14-day free trial.

What types of businesses use VendorShield?

VendorShield is built for general contractors, construction firms, property management companies, and any business that needs to track vendor insurance compliance. If you manage subcontractors or third-party vendors who must carry insurance, VendorShield automates the entire process.

All states

CAStatewide GC license required

California Contractor License & Insurance Requirements

California requires a CSLB license for any contractor performing work where the combined labor + materials price is $500 or more. License classifications include A (general engineering), B (general building), B-2 (residential remodeling), and dozens of C-specialty classes (C-10 electrical, C-36 plumbing, etc.).

License threshold

$500 (combined labor + materials, single project)

WC trigger

All employers with one or more employees (including roofing contractors with zero employees per LC §3700)

Bond

$25,000 contractor bond required for licensure (per SB 607, effective Jan 1, 2023). Qualifying individuals also need a $25,000 bond of qualifying individual.

Authority

Verify license

License authority: Contractors State License Board (CSLB) — license verification portal.

Workers' comp posture

California Labor Code §3700 requires every employer to carry workers' comp from the date of first hire. Roofing contractors (C-39) must carry WC even with zero employees. Sole-proprietor working owners of corporations may exclude themselves only via formal exclusion election.

Common public-bid insurance minimums

These are limits commonly required on CA public-works prequalification. They are NOT a state-mandated minimum — verify against your specific procurement spec or contract.

General Liability

$1M per occurrence / $2M aggregate (typical Caltrans + UC + city of LA spec)

Workers' Comp

Statutory + $1M Employer's Liability

Auto Liability

$1M combined single limit (owned, hired, non-owned)

California state-specific quirks

CSLB suspended licenses are public — VendorShield + most major GCs flag any 'Suspended' or 'Expired' status on intake.
License bond must be from CSLB-approved surety; cash deposits accepted in lieu but rarely used.
Public Works projects require DIR registration (separate from CSLB) and certified payroll uploaded to DAS via CMU.
C-61 (D-class) limited specialty licenses are restricted to a single trade — verify the D-letter matches the work.
Roofing contractors must carry WC even with zero employees (LC §3700).

3 pitfalls every CA GC misses

Trusting a 'doing-business-as' name on the COI

California subs frequently operate under DBAs that don't match the CSLB name on file. Always verify the COI Named Insured matches the CSLB license-holder exactly — not just the DBA the GC knows them by.

Missing DIR registration on public works

A perfectly valid CSLB license still cannot bid or work public-works in California without a current DIR registration. Verify both at intake.

Joint-check / SB 800 confusion

California's right-to-cure law (SB 800) plus 20-day preliminary notices change the GC's documentation burden. Capture preliminary notices, joint-check agreements, and conditional/unconditional waivers — your COI tracker is the wrong tool for these but the same vendor record should host them.

Automate California sub vetting

VendorShield checks every COI for California compliance — license currency against Contractors State License Board (CSLB), WC posture, public-bid limit minimums, and 3 state-specific pitfalls flagged at intake. No more manual statute lookups.

Start free 14-day trial

Frequently asked questions

Do California contractors really need a license for $500 jobs?

Yes — Business & Professions Code §7028 makes it a misdemeanor to contract without a CSLB license when the combined labor + materials price is $500 or more on any single project. The threshold has not been raised since 1989.

How much workers' comp coverage do California subs need?

California uses statutory limits (medical + indemnity per the schedule), but most GC contracts also require $1M Employer's Liability. Sole-proprietor exclusions are recognized only when formally elected and recorded.

Are 'sole proprietor exemption' workers' comp waivers valid in California?

Only when the sole proprietor has zero employees AND files a formal exemption with the workers' comp insurer. A handwritten 'I'm a sole prop' note on the COI is not sufficient — capture the actual exclusion election form.

What is DIR registration and does my sub need one?

The Department of Industrial Relations registration (Labor Code §1725.5) is mandatory for any contractor bidding or performing work on public-works projects in California. CSLB license alone is not enough for public works.

Do I need to verify both CSLB and city/county business licenses?

Yes. CSLB only handles the trade license. Local business-tax certificates (San Francisco BTRC, LA Business Tax, San Diego business license) are separately required and often missed.

Other states

TXTexas FLFlorida NYNew York GAGeorgia ILIllinois AZArizona

Reference data current as of 2026-06-04. This page is informational and is not legal advice. Always verify with the linked state authority before relying on a number for procurement, prequalification, or legal use.