What is Workers’ Compensation Insurance?
California law requires that employers, including those in the construction industry, carry workers’ compensation insurance, even if they have only one employee. The insurance exists for employees who get hurt or sick because of work. Workers’ compensation insurance provides basic benefits, including medical care, temporary disability benefits, permanent disability benefits, supplemental job displacement benefits and a return-to-work supplement, and death benefits.
Contractor Requirements
CSLB licensees that have an active license or want to reactivate an inactive license, or applicants for an active contractor’s license have to do one of two things:
- Provide CSLB with a valid Certificate of Workers’ Compensation Insurance (Easy-Fill Online Form or Download Guide) or a valid Certification of Self-Insurance from the Department of Industrial Relations;
- Per BPC 7125.6, Licensees must also, list up to the top three workers’ compensation classification codes for which the highest estimated payroll is reported on your policy. A single insurance policy may cover multiple businesses and their subsidiaries, and the workers’ compensation classification code(s) reported for a particular license may not correspond to the classification(s) for that license. The board does not verify or investigate the accuracy of classification codes displayed.
- Provide CSLB with a signed exemption, certifying that they have no employees at this time (Download Form or Order Form #32)
NOTE: All active C-8 Concrete contractors, C-20 Warm-Air Heating, Ventilating and Air-Conditioning contractors, C-22 Asbestos Abatement contractors, C-39 Roofing contractors, and/or C-61/D-49 Tree Service contractors are required to carry workers’ compensation insurance or a valid Certification of Self-Insurance, whether or not they have employees.
Source: Business and Professions Code section 7125
Filing an Electronic Certificate of Workers’ Compensation Insurance with CSLB
For the purpose of submitting a Certificate of Workers’ Compensation Insurance to CSLB, CSLB has created an online form that allows users to submit information that will automatically update the license record. Only insurers duly licensed to write workers’ compensation insurance in California may issue and file certificates. Click below to begin using the electronic process.
Filing a Manual Certificate of Workers’ Compensation Insurance with CSLB
If you prefer to submit your Certificate of Workers’ Compensation Insurance by U.S. mail, CSLB has created a guide to help you complete the form. Click below to download the guide.
(Download Guide)
Filing a Certificate of Workers’ Compensation Insurance Manually – Most Common Mistakes Made
When certificates are filed manually, they must be completed according to CSLB’s requirements. The most common reasons CSLB returns Certificates of Workers’ Compensation Insurance or Certifications of Self-Insurance for correction are below. These mistakes may delay certificate processing which could result in a break in license standing. Certificates are processed by the date CSLB receives a correct and acceptable certificate.
All certificates of insurance are required to have the license number, or if the license has not yet been issued then the application number, on the document.
Once the license is issued the license number is required.
Mistake Made Section in CSLB Guide 1. Entering Incorrect Business Name Section #3 – “Insured” 2. Entering Incorrect Insurance Company Name Section #4 – “Insurer(s) Affording Coverage” 3. Entering Incorrect Policy Number Section #6 – “Policy Number” 4. Not Listing CSLB as Certificate Holder Section #9 – “Certificate Holder” 5. Entering an Invalid Signature Section #10 – “Authorized Representative”