Cal. Health and Safety Code - HSC § 13244. Section 13244.
(a)
All of the following persons or entities shall carry liability insurance set forth in subdivision (b):
(1)
Any person or entity that owns or operates a business engaged in whole or in part, in the wholesale or retail sale of any energy product, liquid or vapor, which is transported or dispensed.
(2)
Any person or entity engaged in the wholesale or retail sale of propane, if the activities are subject to Part 387 of Title 49 of the Code of Federal Regulations and if the activities are within the scope of the National Fire Protection Association (NFPA) Standard 58, “Standard for the Storage and Handling of Liquefied Petroleum Gases.”
(3)
Any person or entity engaged in the wholesale or retail sale of any energy product, liquid or vapor, which is transported or dispensed, if required by law to obtain any California hazardous materials permit based upon that activity.
(b)
Persons or entities set forth in subdivision (a) shall carry liability insurance for any liability arising from that activity in an amount of no less than five hundred thousand dollars ($500,000).
(c)
The liability insurance requirement of this section is a minimum and does not control over other provisions of law, if any, that may require a greater insurance coverage.
(d)
The liability insurance requirement of this section does not apply to any of the following:
(1)
An operation for the exchange of propane cylinders.
(2)
The retail sale of propane in small propane canisters of 20 pounds or less.