Correction: An earlier version of this page incorrectly stated that all classifications lost the no-employee exemption in 2026. This page now reflects CSLB's current guidance.
Under CSLB's workers' compensation guidance, contractors with employees need workers' compensation coverage. A contractor without employees may qualify for an exemption only when the applicable conditions are met. Having a Responsible Managing Employee also prevents use of the ordinary exemption.
| Situation | What to check in 2026 |
|---|---|
| Employees subject to California workers' compensation law | Arrange the required coverage and filing; do not rely on a no-employee exemption. |
| C-8 concrete, C-20 HVAC, C-22 asbestos, C-39 roofing, or C-61/D-49 tree service | CSLB requires insurance or valid self-insurance certification even without employees. |
| No employees and no excluded classification | Check eligibility and submit CSLB's exemption form; an exemption is not automatic. |
| Joint venture, inactive license or out-of-state arrangement | Ask CSLB which specific provisions and documents apply. |
SB 216 originally scheduled a broader requirement for 2026. SB 1455 postponed that change to January 1, 2028. The current section 7125 retains the qualifying no-employee exemption until then. The future rule also has statutory exceptions, so "every contractor, without exception" is not a useful compliance summary. Recheck the law before a future renewal.
Check the legal business name, license number, policy period and document status. A quote, paid invoice or application does not prove that CSLB has processed the required filing. Ask the insurer and CSLB to resolve a mismatch, and verify the license record before relying on it for a job.
If you are required to maintain coverage, a lapse can lead to license suspension. If your business starts employing workers, the facts supporting a no-employee exemption have changed. Arrange coverage when legally required and follow the reporting instructions; do not treat an old exemption as continuing permission.
A licensing requirement does not by itself tell you whether an owner is insured under the workers' compensation policy. Ask the broker to explain eligibility, any owner election or exclusion and the actual terms. Request a quote based on the classification, ownership and work performed. There is no universal minimum premium that fits every contractor.
The contractor license bond and workers' compensation filing are separate obligations. Track their dates independently, alongside the license renewal. Whether a comp policy or a valid exemption is appropriate depends on the current facts; a bond does not answer that question.
Bring your current CSLB record and operating details to a review of the required bond and insurance. Coverage and filing acceptance must be confirmed.
Request a quoteGeneral information only, not legal or coverage advice. Requirements can change. Confirm current requirements with CSLB and qualified advisers. CSLB Bond is operated by Thrive Risk Management Insurance Solutions, Inc., CA License #6012320.