California Bill Allows Contractors to Place Business in Nonadmitted Market

Currently, California law does not allow a limited liability company (LLC) obtaining a contractor’s license to procure insurance through a nonadmitted policy. However, there is a bill pending in the legislature (AB 1236) that, if passed, would allow the nonadmitted market to provide coverage. This is a technical change to the law and has growing support in the Legislature. It has already passed the Assembly and is pending before the Senate. NAPSLO is continuing to monitor and support this legislation.  NAPSLO members can access bill summaries and tracking information through the StateNet tool on the NAPSLO website.