California contractors board requiring changes to worker's comp in 2023

All licensed contractors in California will be required to carry workers’ comp, whether they have employees or not, by 2026.

Until now, the Contractors State License Board only required C-9 roofing contractors — with or without employees — to carry workers’ comp insurance. (Credit: Shutterstock.com)

Starting January 1, 2023, certain licensed contractors will be required to secure a workers’ compensation (WC) insurance policy — regardless of whether they have actual employees. According to a news release by the Contractors State License Board (CSLB), the new requirement is the direct result of Senate Bill 2016 that Governor Newson signed into law on September 30 of this year. 

The list of licensed contractors includes:

Until now, the CSLB only required C-9 roofing contractors — with or without employees — to carry WC insurance. So, what does this all mean?

Simply stated, if contractors in the above classifications have CSLB license renewals between January 1, 2023, and June 30, 2023, then the CSLB will not renew their license without proof of WC coverage. Licensed contractors that have renewal dates after June 30, 2023, will be required to file proof of WC insurance with CSLB by July 1, 2023. However, this is just the first part of the bill. 

Senate Bill 2016: Part two

In the second part of the bill, all contractors, whether they have employees or not, must have a WC insurance policy in place by January 1, 2026.

Those in opposition of the bill claim that it creates a competitive disadvantage for contractors who are following the law and increases already high business costs, according to the CSLB news release. In its defense, the CSLB notes that the bill is meant to protect the public and create a more level playing field for contractors who are abiding by the existing WC laws. This will be accomplished by requiring more contractors to carry coverage beginning January 1, 2023, and all contractors to do so by 2026.

The bottom line with changes in WC insurance laws, brokers will need to help their clients meet the new requirements before the first of the year. BTIS provides coverage for Concrete (C-8) and HVAC (C-20), in addition to owner-only policies, to keep your contractor clients compliant. Our streamlined quoting process makes it easy to compare WC quotes and bind coverage instantly.

Brad Dowling is vice president, workers’ compensation, at Builders & Tradesmen’s Insurance Services, Inc., an Amynta Group Company. To learn more, call 916.772.9200 or email bdowling@btisinc.com 

This piece originally appeared on the Builders & Tradesmen’s Insurance website. It is reprinted here with permission.

Related:

Recommended Stories