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Contractors State License Board
9821 Business Park Drive
Sacramento, CA 95827
Phone (800) 321-CSLB (2752)

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Workers' Compensation Requirements

Workers' compensation insurance is required for issuance of an active license, reactivation of an inactive license, and for the maintenance of an actively renewed license, unless the licensee does not employ anyone in a manner that is subject to California workers' compensation laws (Business and Professions Code section 7125). Workers' compensation insurance is not required for expired or inactive licenses.

Licensees are required to submit proof of their workers' compensation insurance coverage to CSLB. If the licensee does not employ anyone in a manner that is subject to California workers' compensation laws, he/she is required to submit an Exemption from Workers' Compensation form to CSLB. You can download or order an exemption form online or by calling CSLB at (800) 321-CSLB (2752).

Acceptable Documents for Compliance with Workers' Compensation Requirements


Certificate of Workers' Compensation Insurance

  • The certificate must be written by an insurance company licensed through the California Department of Insurance.
  • CSLB must be listed as the Certificate Holder.
  • The contractor's business name and license number must be listed.
  • The policy number must be listed.
  • The effective date and expiration date of the policy must be listed.
  • The certificate must have the signature of an authorized representative of the insurance company.

Certification of Self-Insurance

  • The certification must be written through the California Department of Industrial Relations.
  • The contractor's business name and license number must be listed.
  • The self-insured number must be listed.
  • The effective date and expiration date must be listed.
  • The certificate must have the signature of an authorized representative of the insurance company.

Exemption from Workers' Compensation

You cannot file an Exemption from Workers' Compensation form if any of the following conditions exist.

  • You employ anyone in a manner that is subject to California workers' compensation laws.
  • Your license is qualified by a Responsible Managing Employee (RME).
  • You hold a C-39 Roofing classification.

If you meet the exemption requirements, complete the exemption form and send it to CSLB's Headquarters.

Upon employing anyone in a manner that is subject to the workers' compensation laws of California, the exemption form on file will no longer be valid and you will be required to obtain and submit proof of workers' compensation insurance coverage. This proof must be received at CSLB's Headquarters within 90 days of the hire.


Exemption from Workers' Compensation — Out-of-State Contractors

If you are an out-of-state contractor licensed in California, but do not hire employees who reside in California, you must complete and submit the exemption form. However, if you have employees working in California from another state, you must also provide a certificate of insurance from your workers' compensation insurance carrier in your state.


Workers' Compensation Suspension

Workers' compensation coverage must be continuous. Failure to maintain workers' compensation insurance coverage will result in the license being suspended.

Any work performed while the license is suspended is considered to be unlicensed and disciplinary action can be taken against you.

Once acceptable proof of workers' compensation insurance coverage is received at CSLB's Headquarters, the workers' compensation suspension will be lifted.