What should a California contractor prepare for a Workers' Compensation review?

Prepare the business name, license or trade information, employee and payroll details, operations, vehicles or equipment when relevant, contracts, prior coverage, and claims history. A licensed team member can then review the request subject to carrier eligibility, policy terms, and underwriting.

How are Workers' Compensation limits or terms selected for a contractor?

Limits and terms are not universal. They can be influenced by the contractor's actual work, contracts, employee duties, vehicle use, project requirements, prior loss history, carrier guidelines, and applicable California requirements. The appropriate structure must be reviewed for the individual operation.

Can Asena provide an exact price or guarantee coverage for this page?

No. Any indication is preliminary until complete information is reviewed. Availability, pricing, limits, effective dates, certificates, and coverage are subject to carrier eligibility, policy terms, underwriting, and written confirmation.

Ghost Policy vs. Standard Workers Comp: Which Does a California Contractor Need?

## Ghost Policy vs. Standard Workers Comp: Which Does a California Contractor Need? One of the most common questions from California contractors: "Do I need a ghost policy or a standard workers comp policy?" The answer depends on whether you have employees and which CSLB license you hold. ### What is a Ghost Policy? A ghost policy (also called a zero-payroll workers comp policy) is a workers compensation policy with no employees listed on it. The policy exists solely to satisfy the CSLB's requirement that licensed contractors carry workers comp — it does not provide actual wage replacement or medical benefits because there are no employees. **Who qualifies for a ghost policy?** - Sole proprietors with no employees (W-2 or 1099 workers) - SB 216 Phase 1 trades: C-8, C-20, C-22, C-39, D-49 **Ghost policy cost:** Typically pricing varies by classification, payroll, operations, claims history, limits, and underwriting, depending on your trade and carrier. ### What is a Standard Workers Comp Policy? A standard workers comp policy covers your employees if they are injured on the job. It pays: - Medical treatment and hospitalization - Temporary disability (wage replacement) - Permanent disability benefits - Vocational rehabilitation - Death benefits for dependents **Who needs a standard policy?** - Any contractor with employees (W-2 workers) - Contractors who use 1099 subcontractors who are not licensed and insured themselves ### SB 216 Requirements California SB 216 Phase 1 (effective January 1, 2023) requires contractors in these trades to carry workers comp even as sole proprietors with no employees: - C-8 (Concrete) - C-20 (HVAC) - C-22 (Asbestos Abatement) - C-39 (Roofing) - D-49 / C-61 (Tree Service) For these trades, a ghost policy satisfies the CSLB requirement at a fraction of the cost of a standard policy. ### The Key Decision Tree 1. **Do you have any employees?** → You need a standard workers comp policy. 2. **Are you a sole proprietor with no employees in a SB 216 Phase 1 trade?** → A ghost policy satisfies the CSLB requirement. 3. **Are you a sole proprietor with no employees NOT in a SB 216 Phase 1 trade?** → You are currently exempt, but Phase 2 (January 1, 2028) will require coverage for all CSLB license holders. 4. **Do your GC clients require a WC COI?** → Even if not legally required, a ghost policy lets you provide a COI and win more bids. ### Get the Right Policy for Your Situation Asena Capital Insurance Services helps California contractors determine exactly what coverage they need. **Call (858) 925-9555** or [get a quote online](/get-workers-comp-quote).