California workers’ comp and subcontractor insurance requirements
What general contractors, property managers and other businesses hiring subcontractors in California need to know: who has to carry workers’ comp, when you’re on the hook for an uninsured sub, and what to collect before work starts.
California at a glance
| Who must carry workers’ comp | Every employer with 1 or more employees. |
|---|---|
| Construction | Licensed contractors must keep a workers’ comp certificate or an exemption on file with the Contractors State License Board (CSLB). Roofing contractors must carry workers’ comp even with no employees, and since 2023 so must concrete, HVAC, tree service and asbestos abatement contractors. A requirement for all licensed contractors has been delayed; check the CSLB for the current effective date. |
| Where coverage comes from | Private insurers, plus self-insurance where approved |
| Regulator | California Division of Workers’ Compensation |
Are you liable for an uninsured sub in California?
Hiring an unlicensed contractor for work that requires a license can make you that contractor’s employer for workers’ comp purposes (Labor Code § 2750.5).
Separately, your own workers’ comp premium auditor may charge you for an uninsured sub’s payroll. Collecting a current certificate for every sub is the simplest protection. See workers’ comp audits and uninsured subcontractors, or estimate the cost with the workers’ comp audit calculator.
California-specific things to know
- Check a sub’s license and workers’ comp status on the CSLB license lookup at cslb.ca.gov.
What to collect from subcontractors in California
- A certificate of insurance, usually an ACORD 25, showing GL, auto, umbrella and workers’ comp.
- Exemption paperwork for sole proprietors or officers who claim they don’t need workers’ comp under California rules.
- Additional insured and waiver of subrogation endorsements for higher-risk trades. See waiver of subrogation on workers’ comp.
- A renewal certificate before each policy expires. See COI expiration.
Common contract minimums
These aren’t set by California law. They’re typical subcontract requirements that you can adjust by trade and project size.
| Coverage | Typical minimum |
|---|---|
| General liability | $1M each occurrence / $2M aggregate, additional insured, primary and non-contributory |
| Auto liability | $1M combined single limit |
| Umbrella / excess | $1M–$5M+, by trade risk and project size |
| Workers’ comp / employers’ liability | Statutory / $500K–$1M each, waiver of subrogation |
Generate requirements by trade with the subcontractor insurance requirements generator.
Frequently asked questions
Is workers’ comp required in California?
Every employer with 1 or more employees. Licensed contractors must keep a workers’ comp certificate or an exemption on file with the Contractors State License Board (CSLB). Roofing contractors must carry workers’ comp even with no employees, and since 2023 so must concrete, HVAC, tree service and asbestos abatement contractors. A requirement for all licensed contractors has been delayed; check the CSLB for the current effective date. Confirm details with the California Division of Workers’ Compensation.
Is a general contractor liable for an uninsured subcontractor in California?
Hiring an unlicensed contractor for work that requires a license can make you that contractor’s employer for workers’ comp purposes (Labor Code § 2750.5).
What insurance should I require from subcontractors in California?
State law sets workers’ comp rules; your contract sets everything else. Common minimums are general liability of $1M per occurrence and $2M aggregate, auto liability of $1M, workers’ comp with employers’ liability of $500K–$1M, and additional insured status and waiver of subrogation in your favor.
General information, not legal or insurance advice. Last reviewed October 2026. Rules change, so confirm with the California Division of Workers’ Compensation or a licensed professional.
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