Frequently Asked Question:

Do I Need Workers’ Comp to Keep My C-16 License? 

Insurance Type
Related Industries
Fire Protection
Construction
Contractors & Trades
Related Coverages
Workers’ Compensation

The Short Answer

If you have employees, yes. California requires workers’ compensation for any licensed contractor with employees, and the CSLB suspends the license automatically when the certificate lapses — the suspension is retroactive to the date coverage ended.

The Full Answer

The exemption trips people up more than the requirement does. A C-16 licensee can file a no-employee exemption with the CSLB, and that exemption is genuine — but it closes the moment anyone goes on payroll, including a part-time helper or a family member drawing wages. Contractors who grow past one person and forget to update the filing are the ones who find out during a certificate check. 

What a lapse actually costs: 

The suspension is backdated. CSLB suspends to the date coverage ended, not the date it noticed. Work performed in the gap was performed unlicensed, which is a problem for collections as much as for compliance. 

Prequalification stops. General contractors and public agencies pull license status before award. A suspension shows immediately and takes you off the bid list while it is being cleared. 

The requirement is widening. Senate Bill 216 was written to extend mandatory coverage to every licensed contractor regardless of employees. Senate Bill 1455 moved that date from January 2026 to January 1, 2028, and the CSLB is running an exemption verification process ahead of it. Contractors still working from the original date are planning around a deadline that moved. 

How Liberty structures your protection: 

Liberty writes workers’ compensation alongside the liability program rather than leaving it to a separate carrier relationship, which keeps the certificate current and the renewal dates aligned — the two things that cause most accidental lapses.

Related Questions

Longshore and Harbor Workers’ Compensation (USL&H) is federal workers’ compensation for certain maritime workers who are not seamen, such as ship repairers and longshore workers injured on or near navigable water. Employers whose workers qualify generally need it added as an endorsement to their state workers’ compensation policy.

Sometimes. Marine property and hull policies can cover wind damage to docks, piers, and vessels, but named-storm and flood losses often carry a separate percentage deductible or a sublimit, and some policies exclude them at specific locations.

Marina insurance cost depends mostly on the value of the vessels and structures insured, the location’s storm exposure, and the services offered, such as fueling, repair, and hauling. Loss history and the liability limits and deductibles chosen also move the premium.

Contact Us

More questions? Talk to an Expert

Contact Liberty to work with an expert that can answer all your questions.