Starting on January 1, 2023, licensed contractors in certain industries will be required to secure workers’ compensation insurance, even if they don't have any employees. This new requirement is the result of Senate Bill 216, which was signed into law on September 30, 2022 by Governor Newsom. The industries affected by the new requirement include concrete (C-8), HVAC (C-20), asbestos abatement (C-22), and tree service (D-49). Previously, only C-9 roofing contractors were required to carry workers’ compensation insurance.

    Contractor license renewals between January 1, 2023 and June 30, 2023 must provide proof of workers’ compensation insurance coverage to the Contractors State License Board to have their license renewed. Contractors with renewal dates after June 30, 2023, must file proof of workers’ compensation insurance by July 1, 2023.

    The purpose of the new requirement is to ensure that all licensed contractors are adequately covered in the event of a workplace injury. With workers’ compensation insurance, contractors will be able to provide financial support and medical benefits to employees who are injured on the job. This will help to reduce the financial burden on injured workers and their families.

    By 2026, all contractors, regardless of employee status, must have workers’ compensation insurance.  The Contractors State License Board has stated that failure to secure a workers’ compensation insurance policy, will result in consequences for licensed contractors. These consequences may include fines, penalties, and even suspension or revocation of their license. Therefore, it is important for contractors to take this new requirement seriously and take action to secure an insurance policy as soon as possible. If you are a contractor and have questions regarding workers’ compensation insurance, call us at 714-992-2390, or CLICK HERE to request a quote from us. We are here for all of your insurance needs!

To learn more about Senate Bill 216 CLICK HERE