Do I need a ghost policy if I'm a sole proprietor with zero employees?

Yes, for almost every CSLB classification effective January 1, 2026. The exemption you may have filed in past years is no longer valid for most trades.

Does the owner get any benefits under a ghost policy?

No. The whole point of a ghost policy is that the owner-officer is excluded from coverage. If you want personal injury coverage for yourself, you'd add yourself back to the policy and the premium would be re-rated based on your own payroll.

What if I hire a sub or day laborer for one job?

Under California Labor Code §2750.5, your subcontractor is presumed to be your employee for workers' comp purposes unless the sub has their own active WC policy on file. Hiring anyone — even one day — without verifying their coverage can expose you to the entire WC claim if they get hurt.

Can I cancel a ghost policy in summer if I'm a seasonal contractor?

Cancelling mid-term will likely trigger a CSLB license suspension. If you're truly seasonal, talk to us about pay-as-you-go options that hold the policy active year-round at a minimum cost.

How fast can you bind an SB 216 ghost policy?

Same business day in most cases. Call us with your CSLB license number, EIN, and a copy of your driver's license — we can have a binder issued and a Certificate of Insurance in your inbox before the end of the day.

My license is already suspended — can you still help?

Yes. We can bind a policy today and file directly with CSLB. Reinstatement typically takes 24–72 hours after the carrier reports the new coverage.

Is this the same as a "shell" or "owner-only" policy?

Yes — "ghost policy," "owner-exclusion policy," "shell policy," and "owner-only policy" all describe the same product. Different carriers use different names; the structure is the same.

SB 216 Workers' Comp Ghost Policy California (2026 Guide)

Quick Answer

California Senate Bill 216 took effect January 1, 2026. It ended the workers' compensation exemption for most CSLB-licensed contractors — including sole proprietors with no employees. To keep your contractor license active, you now need a workers' comp policy. For solo contractors, the standard fix is a ghost policy (also called an owner-exclusion policy). Expect to pay $800–$1,500 per year. Call (858) 925-9555 and we can bind same-day.

What SB 216 actually changed
Which CSLB license classifications are affected
What is a ghost policy?
How much does an SB 216 ghost policy cost?
What happens if you don't comply
How to file with CSLB
Frequently Asked Questions

What SB 216 Actually Changed

For decades, California sole proprietors with no employees could file a workers' comp exemption with the CSLB. Sign a form, prove you had no W-2 workers, and your license stayed active without a workers' comp policy. That door is now closed.

Senate Bill 216 (Cortese), signed in September 2022 and phased in over three years, eliminated the exemption for most license classifications. Effective January 1, 2026, every CSLB-licensed contractor in those classifications must carry workers' comp — even if you work alone.

The law was passed in response to widespread misclassification of workers as independent contractors, leaving injured workers without benefits and shifting medical costs onto public insurance pools. The legislature's solution: make workers' comp universal across the affected trades.

Read the bill text at the California Legislative Information site and the CSLB's implementation guidance at cslb.ca.gov.

Which CSLB License Classifications Are Affected

SB 216 phased in by license class. Here is where things stand as of January 1, 2026:

All "C" specialty classifications — including C-8 Concrete, C-10 Electrical, C-15 Flooring, C-20 HVAC, C-27 Landscaping, C-33 Painting, C-36 Plumbing, C-39 Roofing, C-46 Solar, and most others — now require workers' comp coverage regardless of employee count.

A short list of low-risk classifications was exempted from the legislation; the CSLB publishes the current list at its official site. If you hold any of the major commercial or residential trade licenses, assume the rule applies to you. Call us and we can confirm your specific class in under five minutes.

C-39 Roofing Contractors have always been the exception — roofers have been required to carry workers' comp regardless of employee count since long before SB 216.

What is a Ghost Policy?

A ghost policy is a real workers' compensation policy with a very specific structure:

The policy is issued in the business entity's name (sole proprietor, LLC, S-corp).
The owner-officer is excluded from coverage by signing the WCIRB Officer Exclusion form.
Because there is no payroll on the policy, the premium is minimal — typically the carrier's annual minimum premium of $800 to $1,500.
The policy is reported to the CSLB as proof of workers' comp coverage. Your license stays active.

The "ghost" name comes from the fact that the policy covers a workforce that doesn't really exist — there are no employees and the owner has opted out of benefits. It exists purely to satisfy the CSLB compliance requirement.

A ghost policy is not the same as no coverage. If you hire even one worker later — full-time, part-time, day laborer, or 1099 — you must add them to the policy and pay premium based on their payroll. The ghost shell becomes a real working policy the moment you bring someone on.

How Much Does an SB 216 Ghost Policy Cost?

Typical SB 216 ghost policy costs in California (2026)

Carrier tier	Typical annual premium	Notes
Direct WC writer (Employers, ICW Group, Berkshire Hathaway Homestate)	$800 – $1,200	Minimum-premium policies, fastest to bind
Specialty / surplus market	$1,000 – $1,800	Used when a class is harder to place
Pay-as-you-go option	$850 – $1,400	Low deposit, monthly true-up if you ever add employees

Estimates only — based on 2026 California market rates. Actual premium depends on your CSLB classification, business structure, and prior claims. Sources: WCIRB advisory rate filings (wcirb.com) and California Department of Insurance carrier filings (insurance.ca.gov).

We shop carriers appointed with Asena Capital — Travelers, Liberty Mutual, Zurich, Markel, Employers, ICW Group, Berkshire Hathaway, and Nationwide — to find the lowest-cost ghost policy for your trade.

Need an SB 216 ghost policy bound this week? Call (858) 925-9555 or [get an instant quote](/instant-quote). We can issue your Certificate of Insurance the same business day.

What Happens If You Don't Comply

The CSLB does not send warnings before suspending a license for missing workers' comp. The carrier reports lapses or non-coverage directly to the CSLB. The Board then:

Suspends the license 30 days after the lapse is reported.
Posts the suspension publicly on the CSLB license lookup at cslb.ca.gov.
Any work performed while the license is suspended is unlicensed work under California Business & Professions Code §7028 — exposing you to criminal misdemeanor charges and forfeiture of your right to collect payment on those jobs.

Operating without coverage is also a violation of California Labor Code §3700, which carries fines up to $10,000 and possible imprisonment. The state takes it seriously.

How to File With CSLB

Once your ghost policy is bound, the carrier files a Form 5 (or electronic equivalent) directly with the CSLB. You do not need to mail anything yourself in most cases. To confirm:

Log in to your CSLB account at cslb.ca.gov.
Check the "Workers' Compensation" section of your license record — it should show "Active" with the new carrier and effective date.
If it still shows "Exempt" or blank after seven business days, call us and we will follow up with the carrier and CSLB directly.

We file directly with CSLB on behalf of our clients and verify the record before sending you the Certificate of Insurance. No paperwork on your end.

SB 216 compliance starts with a phone call. Call (858) 925-9555 or [get your instant quote](/instant-quote) — we can bind today and have your CSLB record updated within 48 hours.