[California Import]

I'm in California (not sure that matters for this question), but wondering if I'm required to purchase Worker's Comp insurance, even if I have no employees. I hire painting contractors to take the jobs that I bring in. But currently I have no employees.
Am I required to have a Worker's Comp Insurance policy even with no employees?
Thanks, everyone!!

 

[KAP]

Do your subs have WC? You're looking at it from the wrong lens.... WC is just another tool in your business that your CUSTOMERS pay for... if you had to rent a tool, who pays for it ultimately? All costs flow through your customer...

 

[California Import]

Thanks, Thom;
Yes I understand that my customers ultimately pay for this, I was just wondering about the legal requirement. I'm not exactly sure how Worker's Comp actually functions legally. Like a 'general policy' that I have (Like Gen. Liability), to cover anyone (like a Sub's helper) who gets hurt on a jobsite, even though I don't have any particular individual employee that I could NAME on a Worker's Comp policy. Does my question make sense?

 

[Randy Bush]

Here in Montana I am not required to have W/C if I have no employees, but than I have to have an exemption from the state as a licensed contractor. It all depends on your state requirements. Any subs you hire need to have W/C or an exemption plus general liability insurance.

 

[California Import]

Thanks, Randy

 

[Mr Latone]

Worker's Comp is state specific

 

[DMJ]

In CA, you can have workers comp exempt! Just make sure the subs you hire have WC

 

[California Import]

That makes sense.
Thanks, DMJ !

 

[Seavee33]

Depends on your state. There are workman's comp exceptions.

 

[California Import]

Thank you, SeaVee33!

 

[TheStairman68]

California is slowly adding workman's comp to each of the license classes. I'm not sure if painting contractors have to yet, but soon all classes will.

 

[ScipioAfricanus]

I am a B and a C-10. I have no employees and no workman's Comp.

Andy.

 

[pacificcontractingso]

If you look it up its called a ghost policy and it basically a place holder policy that cost a grand or so a year to keep. The main way they will enforce it is throuugh not renewing your license if you cant produce the certificate. also, the only way to get the certificate is to submit your payroll recordss to show who you paid and didnt pay, so if you dont have any payroll than you will have to just have the ghost policy. People will find a way around it. Residential construction has always been good at getting around these things.

 

[California Import]

California is slowly adding workman's comp to each of the license classes. I'm not sure if painting contractors have to yet, but soon all classes will.

Yes, and I think C-33 (painting and decorating) is now on the list for requiring Workman's Comp. Thanks, Stairman 58.

 

[Moondragon]

I'm in California (not sure that matters for this question), but wondering if I'm required to purchase Worker's Comp insurance, even if I have no employees. I hire painting contractors to take the jobs that I bring in. But currently I have no employees.
Am I required to have a Worker's Comp Insurance policy even with no employees?
Thanks, everyone!!

CI .... With regards to your WC question - the short and sweet answer is Yes. In CA you SHOULD have WC as you are "hiring" other subs to take on painting tasks. Whether or not they are W-2 employees, 1099 employees or you're giving the company a W-9 - you are still the one hiring and it would be ill-advised to move forward without it.
You also say that "you're bringing in a person as an RMO for your company" - don't you have your own contractor license? In the state of CA, you are limited to $500 jobs only without a license and if the CSLB find out that not only are you operating without a license, but you're also operating without WC, they will literally flag you and your identifiers and put a 10 year hold where you are unable to legally work in construction for that time period. Sorry for the hard slap, but you need to get your license - yesterday.

 

[California Import]

Thanks, Moondragon;
Yep, you're right; I went ahead and got my WC. It's a brand new business for me, and I have my own C-33 issued and registered with the CSLB, but they make that provision for me because I have an RMO that provides some sort of "supervisory cover" for me as I rack up enough of my own experience. I hire painters that have their license, so we're good and legal and insured and bonded. But yes, I went ahead and purchased my Workers Comp and we're good to go!
Thanks!

 

[Teh Swede]

CI .... With regards to your WC question - the short and sweet answer is Yes. In CA you SHOULD have WC as you are "hiring" other subs to take on painting tasks. Whether or not they are W-2 employees, 1099 employees or you're giving the company a W-9 - you are still the one hiring and it would be ill-advised to move forward without it.
You also say that "you're bringing in a person as an RMO for your company" - don't you have your own contractor license? In the state of CA, you are limited to $500 jobs only without a license and if the CSLB find out that not only are you operating without a license, but you're also operating without WC, they will literally flag you and your identifiers and put a 10 year hold where you are unable to legally work in construction for that time period. Sorry for the hard slap, but you need to get your license - yesterday.

1000$ as of 1/1/2025