Workers' Comp for Contractors With No Employees: Do You Still Need It?

Not always, at least not yet. If you're a licensed California contractor with no employees, you can usually file a CSLB exemption instead of carrying a policy, unless your license is C-8, C-20, C-22, C-39, or C-61/D-49. Starting January 1, 2028, Workers Comp becomes mandatory for every licensed contractor, no matter how many people you employ.

You work alone. No crew, no payroll. You pull your own permits, run your own jobs, and invoice the customer yourself. So Workers Comp is only for employers, right?

Sometimes. It depends on your license, your setup, and the date. Workers Comp in Roseville follows the same California rules as everywhere else in the state, and those rules are changing.

There are really two questions here. What does the law require? And what makes sense for your business even when the law doesn't require it? Here's both, plus what changes when you hire help or work under a general contractor (GC).

Does California Require Workers' Comp if You Have No Employees?

The general rule is simple. If you have employees, you need Workers Comp.

If you're a licensed contractor with no employees, you may be able to file an exemption with the CSLB (Contractors State License Board) and skip the policy. But the exemption isn't open to everyone. These license classifications have to carry coverage even with zero employees:

• C-8: Concrete
• C-20: Warm-Air Heating, Ventilating, and Air-Conditioning
• C-22: Asbestos Abatement
• C-39: Roofing
• C-61/D-49: Tree Service

Other limits can apply too, including having an RME. That's a Responsible Managing Employee, the person who qualifies the license.

What's changing in 2027 and 2028

Here's the part to watch. Starting January 1, 2028, Workers Comp will be mandatory for every licensed contractor, regardless of headcount. The no-employee exemption ends after December 31, 2027. CSLB is also rolling out a stricter exemption-verification system starting January 1, 2027.

If you rely on an exemption today, find out what those changes mean for you now, not in late 2027. And check CSLB's current requirements before you act on any of this. The rules have moved before.

Who Qualifies for a Workers' Comp Exemption?

Eligibility depends on how your business actually runs. Calling yourself self-employed isn't enough.

An exemption isn't a type of insurance. It's a filing. You're telling the state you don't have employees, so you don't need a policy covering them. It doesn't protect you if you get hurt, and it may not satisfy a GC who wants a certificate.

Sole proprietors working alone

If you do all the work yourself, you may qualify. You still have to meet state and CSLB requirements, and your classification can't be one of the five above.

Your exemption only holds as long as you really have no employees. Even part-time or casual help can count.

Contractors who hire subcontractors

Hiring another business isn't the same as hiring an employee. A true sub runs their own business, holds their own license, and controls how they do the work.

But California looks at the real relationship, not the label. A signed subcontractor agreement alone doesn't make someone an independent contractor. If your "sub" works only for you, uses your tools, and takes your direction, they may be treated as an employee.

A few questions help sort it out:

• Does the sub hold their own license?
• Do they hire and manage their own crew?
• Do they work for other customers?

If the answers are no, take a closer look before you call them a sub. We cover the employee-vs-sub question in more detail in Workers' Comp for California Contractors: Who Needs It, Who's Exempt.

Contractors with an RME or a restricted classification

Some license setups block an exemption outright. A classification on the list above does. An RME arrangement usually does too, because an RME is an employee of your business, and the exemption only applies when you have none. Verify your eligibility with CSLB before you rely on it.

If I Work Alone, Why Would I Still Want Workers' Comp?

Even when coverage isn't required, it can still make sense.

Covering yourself if you get hurt

Construction work hurts people. Falls, cuts, lifting injuries, equipment accidents. It happens to careful contractors too.

A standard Workers Comp policy generally covers employees. As the owner, you aren't automatically covered. Sole proprietors may be able to elect coverage for themselves, depending on the policy and the carrier. Without it, medical bills and lost work time come out of your pocket.

Getting on the jobsite

A GC or project owner may ask for proof of Workers Comp or paperwork showing your exemption. A contract can ask for more than state law does.

Read the project documents before you bid or accept work, and look for the insurance section. Some GCs won't let you on the jobsite until they have your paperwork. If a GC needs a certificate fast, we get same-day certificates out.

Getting ready to grow

Your insurance needs change when your business does. Bring on one helper and the picture shifts. Reassess your coverage before you add workers, not after.

What Happens When You Hire Your First Employee?

California employers generally have to provide Workers Comp once they have employees. An exemption you filed as a solo operator can stop being valid the moment you hire someone the law counts as an employee.

CSLB says contractors with an exemption on file must submit proof of coverage within 90 days of employing someone. Confirm that deadline with CSLB before you count on it.

Better yet, don't wait for the deadline. Line up coverage before your new hire's first day, and confirm timing with your agent.

How Much Does Workers' Comp Cost in Roseville?

There's no single price. Your premium depends on:

• Your type of work and class code (the number carriers use to rate your trade)
• Employee payroll
• Claims history
• How the policy is set up and which options you choose

A contractor who works alone may have different options than a business with a crew. Including yourself as an owner can change the policy's cost and terms. And don't assume you'll qualify for a bare-minimum policy.

The right comparison starts with your trade, your license, and what coverage you actually need. We shop multiple carriers, so you see real options instead of one company's number.

Workers' Comp vs. General Liability: What's the Difference?

These two get mixed up a lot. They do different jobs.

Coverage	What it's for
Workers Comp	Helps pay medical bills and lost wages when an employee is hurt on the job.
General Liability	Helps cover claims when your work hurts someone else or damages their property.
Workers Comp with owner coverage	Can cover you, the owner, too, if you're eligible and elect it.

GL doesn't replace Workers Comp when Workers Comp is legally required. Workers Comp doesn't replace GL either. Most contractors need to understand both.

How We Help

You build. We handle the insurance part. Here's what that looks like:

• We help you tell the difference between an insurance requirement and an exemption.
• We review your trade, business structure, and workforce to figure out which questions you need answered.
• We walk you through your Workers Comp options, including whether owner coverage makes sense.
• We show you how Workers Comp fits with your GL and the rest of your coverage.

Roseville contractors, before you assume you don't need coverage, look at your situation with someone who does this every day. We're a local agency, a real person picks up the phone, and it's a lot easier to get answers now than to find out the hard way. Talk to an Agent and we'll help you sort out where you stand.

Frequently asked questions

Do sole proprietors in California need Workers Comp?

Not always, but that's changing. Today, an eligible sole proprietor with no employees may be able to file a CSLB exemption. Some classifications have to carry coverage anyway, and other license details can matter too. Starting January 1, 2028, Workers Comp will be mandatory for every licensed contractor, and the exemption goes away.

Can I get Workers Comp if I work alone?

Possibly. If you're eligible, you may be able to elect coverage for yourself as the owner, depending on the policy and the carrier.

Do independent contractors need Workers Comp in Roseville?

It depends on the actual working relationship, your trade, and your license. The same California rules apply in Roseville as anywhere else in the state.

Can a general contractor require Workers Comp if I have no employees?

Yes, in many cases. A contract can require documentation or insurance beyond the state minimum, and some GCs won't let you on the jobsite without it.

What happens if I hire someone after filing a Workers Comp exemption?

Your exemption may no longer be valid once you hire someone the law counts as an employee. You'll need to get coverage and update your CSLB records. CSLB currently says proof of coverage is due within 90 days of the hire.