In 2023, California passed a law requiring all licensed contractors to carry Workers’ Compensation insurance – even if they don’t have employees. The bill, SB 216, which was signed into law in the fall of 2022, is being implemented in phases over three years and will require all licensed contractors to carry Workers’ Compensation insurance by January 2026.
According to the California Contractors State Licensing Board (CSLB), the updated Workers’ Compensation requirement applies to all licensed contractors that operate in California, including concrete contractors, HVAC contractors, tree service companies, and asbestos abatement firms. In addition, the CSLB provides an avenue on its website for consumers to confirm that a contractor is properly licensed and that it has the required Workers’ Compensation coverage.
Our Workers’ Compensation Ghost Policy
CCIS provides self-employed contractors with no workers and independent contractors with a Ghost Policy to show proof of Workers’ Compensation insurance. A Ghost policy enables contractors to meet state requirements and contractual obligations, land more jobs, and gain a competitive edge over contractors who cannot provide a certificate of insurance.
It’s important to note that no coverage or benefits are available. Claims cannot be made against a Ghost policy.
NOTE: Consult with your legal professional and the applicable state statute and regulations regarding your business operations and Workers’ Compensation compliance.