For years, many California contractors operated without workers’ compensation insurance because they had no employees — and the law allowed it.

That era is ending.

A statewide change will soon require every CSLB-licensed contractor in California to carry workers’ compensation insurance — even if you have zero employees.

Originally, full enforcement was set for January 1, 2026 under SB 216. A new bill, SB 1455 , has extended the full implementation date to January 1, 2028 .

But this extension does not mean contractors can “wait until 2028.”

There will be a new  exemption verification process   starting January 1, 2027 , and the CSLB is already preparing systems to enforce the upcoming changes.

With so many moving parts, it’s no surprise contractors are unsure what to do next — especially those who’ve never needed workers’ comp before. Many are worried about being pushed into expensive minimum premiums or misunderstandings about the requirement.

MartinoWest is here to make this simple, affordable, and fast.

SB 216 (2022) — The Foundation

SB 216 requires all licensed contractors, regardless of employee count, to maintain workers’ compensation coverage.

Phase 1 (Effective January 2023) applied to:

• C-8 Concrete
• C-20 HVAC
• C-22 Asbestos Abatement
• D-49 Tree Service
  (And C-39 Roofing already had a coverage requirement before SB 216.)

SB 1455 (2024) — The Updated Timeline

SB 1455 extended full implementation to January 1, 2028 , giving CSLB more time to build verification tools and update their systems.

2027: New Verification Requirement

Contractors who believe they are exempt will be required to complete a new CSLB exemption verification process by January 1, 2027.

If they fail to complete this process, they risk:

• Losing their exemption
• License suspension or non-renewal
• Delays that may affect ongoing work

2028: Full Enforcement

By January 1, 2028, nearly all contractors must have:

The only exceptions are narrow joint-venture scenarios defined by statute.

If you’re a contractor with no employees, your workers’ comp policy will be based on $0 payroll , often called a ghost policy.

But even with no employees to cover, insurers must charge a minimum premium , which varies significantly:

• Low range: $400–$700
• Common range: $1,000–$1,500
• High range: $1,500–$2,500+

This is where contractors often get stuck overpaying.

If you work with a carrier with high minimums—or you get placed under the wrong class code—you could pay much more than necessary.

MartinoWest helps prevent that.

Most single-operator contractor policies we write fall under $1,500.
CLICK HERE  to get covered in minutes!

Contractors tend to rush near deadlines—and insurance carriers get swamped.

If you wait until late 2027 or early 2028, you could face:

If you wait until late 2027 or early 2028, you could face:

• Slower turnaround times
• Higher minimum premiums
• Fewer policy options
• Delays in your CSLB renewal
• Risk of license suspension

Getting covered early protects your pricing, your renewal timeline, and your peace of mind.

Q: Do I really need workers’ compensation insurance if I have no employees?

A: Yes. By January 1, 2028, nearly all contractors will need coverage or a verified exemption. If you don’t qualify for exemption, you must carry workers’ comp—even as a one-person operation.

 CLICK HERE    to get a quote in minutes.

Q: What is the new 2027 requirement?

A: Contractors claiming exemption will need to complete a CSLB exemption verification process by January 1, 2027 . Failing to complete this process may result in losing exemption status.

Q: What happens if I don’t get coverage by the deadline?

A: Contractors may face:

• License suspension or non-renewal
• Fines
• Delays bidding or completing jobs
• Personal financial exposure if anyone is injured

Q: What is a ghost policy?

A ghost policy is a workers’ comp policy based on $0 payroll for contractors with no employees. It satisfies CSLB requirements but generally does not cover the owner unless elected.

A: Ideal for:

• Sole proprietors
• One-person contractors
• Paper GCs
• Contractors using subcontractors
• Anyone needing proof of workers’ comp for bids or renewals

Q: Why shouldn’t I wait until 2028 to get covered?

A: Waiting risks:

• Higher premiums
• Delayed renewals
• Fewer available options
• Carrier backlogs
• Fines or suspension if deadlines are missed
  

MartinoWest is already helping contractors secure affordable coverage so they can stay compliant and avoid last-minute issues.

 CLICK HERE   to bind coverage in minutes.

Don’t wait until the deadlines hit and premiums spike!
We’ll make compliance simple — and protect your bottom line at the same time.