Sacramento — Today, Assemblyman Curt Hagman’s (R-Chino Hills) AB 1236 was signed by Governor Jerry Brown.
“I am thankful to Governor Brown for recognizing that this bill is vital to individual businesses and the general state economy,” said Assemblyman Hagman. “California contractors will now have proper access to necessary forms of insurance, allowing them to operate and participate in beneficial economic activity.”
In 2010, SB 392 (Florez) granted limited liability company (LLC) status to contractors. One of the provisions of SB 392 regarding insurance stated that LLCs must have insurance from a California admitted carrier, but did not specifically reference surplus line carriers, which provide insurance coverage to more complex businesses such as contractors. Therefore, SB 392 only allowed contractors to purchase insurance from the admitted market. Assemblyman Hagman’s AB 1236 fixes this oversight by allowing a contractor organized as a LLC access to surplus line carriers.