In California, all contractors are required to have workers' compensation insurance, even if they have no employees. Senate Bill 216 (SB 216) phased in requirements starting in 2023 for specific trades, with a full mandate for all active licensees by January 1, 2026, to curb uninsured, on-the-job injuries.

Failure to carry required workers' compensation insurance can lead to immediate license suspension by the Contractors State License Board (CSLB).

Even if you are a sole proprietor with no employees, you must comply with these regulations. If you hire anyone including subcontractors or day laborers, you are considered an employer under California law and must have workers' compensation insurance.

Property owners hiring uninsured contractors may be held liable if a worker is injured on their property.

Non-licensed handyman are considered Non-Licensed Contractors and must still comply with the law.