California Workers’ Comp for Contractors with No Employees
Every CSLB-licensed contractor must carry workers’ comp by January 1, 2028, even with no employees. Get an owner-only policy filed with the CSLB, keep your license active, and add GL and bonds in one place. Call (949) 868-7350.
Do California contractors with no employees need workers’ comp?
Yes. Under SB 216, as amended by SB 1455, every contractor licensed by the CSLB must have a workers’ comp policy on file starting January 1, 2028, whether or not they have employees. Roofers (C-39) and contractors in C-8 (concrete), C-20 (HVAC), C-22 (asbestos abatement) and D-49 (tree service) already must. Hard Hat Insurance, the marketing division of Bearstar Insurance Services, places owner-only and small-crew workers’ comp with State Fund and private carriers, and makes sure the certificate gets filed with the CSLB. Licensed broker Jesus Galvan, California License #4291921.
California line: (949) 868-7350 · Text or WhatsApp the same number · Se habla español.
What the 2028 rule means for your license
Today, many California contractors with no employees keep their license active with a certificate of exemption. When the rule reaches your license class, an exemption is no longer enough: you need an active workers’ comp policy on file with the CSLB. If the policy isn’t on file, or it cancels, the CSLB can suspend your license, and a suspended license means no permits and no legal contracting work.
Don’t wait for the last month. When thousands of contractors shop at the same time, carriers and State Fund slow down. Setting up the policy early also lets us bundle it with your general liability, license bond and commercial auto so you deal with one broker for everything.
Owner-Only Workers’ Comp
What an Owner-Only Policy Looks Like
If you have no payroll, the policy is usually written at the carrier’s minimum premium. The carrier files the certificate with the CSLB for you. Depending on how your business is set up (sole owner, corporation or LLC), you can usually choose whether the policy also covers you personally, which changes the price. As soon as you hire, you report the new payroll and the same policy covers your workers.
Certificate filed with the CSLB for you.
Easy to add employees when you start hiring.
License Bonds
CSLB $25,000 Contractor Bond
Every active California license also needs a $25,000 contractor license bond, and many cities ask for permit bonds. We can often issue bonds the same day, with an instant online quote.
Bad credit programs available.
License, permit and contract bonds.
If you already have employees, California workers’ comp is getting more expensive: the state’s average advisory rate went up 10.4% on September 1, 2026, and many carriers are raising minimum premiums and removing credits at renewal. Getting your classification right and keeping clerical and sales payroll in their own lower-rated codes is the biggest lever on price. We compare State Fund with private carriers, including for contractors who were dropped, declined or have a high experience mod.
Pay-as-you-go options available (helps cash flow).
Waivers of subrogation for GC and commercial contracts.
Workers' Compensation
What We Cover
Commercial Auto
Work Truck & Fleet
Your personal auto policy may not cover an accident in a truck used for work. See California commercial auto for contractors, including dump trucks, trailers and drivers other agents couldn’t place.
Builders Risk
Builders Risk (Course of Construction)
Protect your project from fire, wind, water damage and theft of materials, all common on job sites. We cover the structure from the ground up until the job is signed off.
Covers materials on-site and in transit.
Required by most lenders for new construction and remodels.
Inland Marine (Tools & Equipment): Covers theft of your generator, compressor and hand tools from the job site or your truck.
Professional Liability: For design-build contractors and construction managers.
Excess Liability (Umbrella): When the standard $1M limit isn’t enough for a big commercial contract.
And More
When Your License Class Must Have Workers’ Comp
C-39 Roofing: already required, even with no employees.
C-8 Concrete, C-20 HVAC, C-22 Asbestos Abatement and D-49 Tree Service: required since January 1, 2023, even with no employees.
Every other class (B General Building, C-5, C-9, C-10, C-33, C-36 and the rest): required starting January 1, 2028, even with no employees.
Showing an exemption today? Check your license on the CSLB site. If it shows a workers’ comp exemption, you will need a policy on file before your deadline.
Working in other states too? We serve contractors in all 50 states. See California contractor insurance.
California line: (949) 868-7350
Jesus Galvan, licensed insurance broker, California License #4291921. Se habla español.
Need Proof for the CSLB or a GC?
Once the policy is bound, the carrier files the certificate with the CSLB, and we can send a certificate of insurance to your GC or customer the same day, with waiver of subrogation if the contract asks for it. Send us your license number and we’ll check your current status.
5 Workers’ Comp Mistakes That Can Get Your License Suspended
1. Waiting until the deadline
Thousands of contractors will need a policy at the same time. Start early so the certificate is on file before your class is required.
2. Letting the policy cancel for non-payment
When a policy cancels, the carrier notifies the CSLB and your license can be suspended. Set up automatic payments or pay-as-you-go.
3. The wrong classification
If your policy lists the wrong type of work, you can get a large bill at audit or have a claim disputed. We match the class to the work you actually do.
4. Treating helpers as 1099 subs
Under California law, many helpers paid on a 1099, and subs without their own license or coverage, can count as your employees for workers’ comp. If they get hurt, the claim comes back to you.
5. Thinking general liability covers your injuries
General liability covers injuries to other people and damage to their property. It does not cover you or anyone working for you. That is what workers’ comp is for.
California Contractor Workers’ Comp FAQ
Do I need workers’ comp in California if I have no employees?
Yes. Every CSLB-licensed contractor must have a workers’ comp policy on file by January 1, 2028. C-39, C-8, C-20, C-22 and D-49 licensees already must.
What happens to my certificate of exemption?
Once your license class is required to carry workers’ comp, an exemption no longer keeps your license active. You will need an active policy on file with the CSLB.
Can the policy cover me as the owner?
Usually you can choose. Depending on whether you are a sole owner, corporation or LLC, owners can often elect to be covered or excluded. We explain the options and the price of each.
How much does an owner-only policy cost?
With no payroll it is usually the carrier’s minimum premium, which depends on your license class and the carrier. Call us and we’ll quote State Fund and private carriers side by side.
Can I get workers’ comp if I was dropped or have a high mod?
Usually, yes. We work with State Fund and specialty carriers that write contractors with prior claims, high experience mods or a cancellation for non-payment.
Contact
Call
info@hardhatinsurance.net
Hard Hat Insurance is a specialized marketing division of Bearstar Insurance Services.
Insurance services provided by Bearstar Insurance Services.
Jesus Galvan is a licensed insurance broker serving contractors in all 50 states. California License #4291921 · NPN #20617222.
Coverage is placed through Bearstar Insurance Services or partner brokerages and carriers. Availability varies by state.
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