If you’re a contractor in California, there’s a major rule change you need to know — and it’s catching a lot of business owners off guard.
👉 Even if you have NO employees, you may now be REQUIRED to carry Workers’ Compensation Insurance.
This isn’t optional anymore for certain trades.
⚖️ What Changed?
The Contractors State License Board (CSLB) now requires specific contractor classifications to maintain an active Workers’ Comp policy — even if they are owner-only operators.
🛠️ Trades That MUST Carry Workers’ Comp (No Exceptions)
If you are licensed in any of the following:
- Roofing
- Concrete
- HVAC (Heating & Air Conditioning)
- Tree trimming
- Framing
- Electrical
- Plumbing
👉 You are REQUIRED to have Workers’ Comp — even with zero employees.
🚨 Why This Matters
Many contractors used to file a Workers’ Comp exemption if they had no employees.
❌ That no longer applies to these trades.
If you don’t comply:
- Your contractor license can be suspended
- You may receive a stop work order
- You could face fines and penalties
💥 Real Risk (This Is Why the Law Changed)
These trades are considered high-risk.
Even if you’re working alone:
- You can still get injured
- Medical bills can be massive
- Lost income can shut down your business
👉 Workers’ Comp now protects YOU, not just employees.
⚠️ What About Subcontractors?
This is where many contractors get burned:
If you hire subs who don’t carry Workers’ Comp:
👉 They can be treated as your employees
💥 That means:
- You’re liable for injuries
- You may owe additional premium at audit
- You could face legal exposure
💡 How Much Does It Cost?
For owner-only contractors in these trades:
👉 Policies are often based on minimum payroll thresholds
👉 Typical cost range:
- $1,500 – $4,000/year (varies by trade & carrier)
🧾 What You Need to Stay Compliant
To keep your license active with CSLB, you must provide:
- Active Workers’ Comp policy
- Insurance certificate (COI)
- Carrier information on file
🏆 Final Takeaway
If you’re in roofing, electrical, plumbing, HVAC, framing, concrete, or tree trimming:
👉 Workers’ Comp is no longer optional — even if you work alone
This is one of the most important compliance changes for California contractors in recent years.
📞 Need Help Getting Covered?
At Starwest Insurance, we specialize in contractor insurance across California.
We’ll help you:
✔ Stay compliant with CSLB
✔ Avoid costly penalties
✔ Get the best rate from top carriers
📲 Call/Text: 714-893-7271
💬 Or request a quote online today