Workers' Comp Ghost Policy
for California Sole Proprietors —
SB 216 Compliant. Same-Day COI.
Under California SB 216 (effective January 1, 2026), all CSLB-licensed contractors must carry workers' compensation insurance — even sole proprietors with zero employees. A ghost policy satisfies this requirement at minimal cost and keeps your license active.
SB 216 Is Now in Effect — January 1, 2026
California Senate Bill 216 eliminated the workers' comp exemption for sole proprietor contractors. If you hold a CSLB license and have no employees, you still need a workers' comp policy. Operating without one can result in immediate license suspension. A ghost policy is the fastest, most affordable solution.
What Is a Workers' Comp Ghost Policy?
A ghost policy is a workers' compensation policy where the business owner is formally excluded from receiving benefits. The policy is real — it's issued by a licensed carrier, satisfies California's legal requirement, and produces a valid certificate of insurance. The owner is just excluded from the benefit side of the policy.
This makes it the most cost-effective compliance solution for sole proprietors who work alone and don't need personal injury benefits from a WC policy. You get CSLB compliance and a COI you can hand to any GC or project owner — at a fraction of the cost of a full WC policy.
Who Needs a Ghost Policy?
Sole Proprietor Contractors
You hold a CSLB license, work alone, and have no employees. SB 216 now requires you to carry WC insurance. A ghost policy is your most affordable option.
Owner-Operators with No W-2 Employees
You may use subcontractors, but have no direct employees on payroll. A ghost policy covers the entity and satisfies CSLB requirements.
Contractors Renewing Their CSLB License
CSLB now requires proof of workers' comp at renewal. A ghost policy certificate satisfies this requirement.
Contractors Required to Show COI by a GC
Many general contractors require a WC certificate before allowing subs on site. A ghost policy produces a valid COI you can provide immediately.
Ghost Policy vs. Full Workers' Comp Policy
| Feature | Ghost Policy | Full WC Policy |
|---|---|---|
| Satisfies CSLB requirement | ✓ | ✓ |
| Produces valid COI | ✓ | ✓ |
| Covers owner injuries | ✗ (excluded) | ✓ |
| Covers employee injuries | ✗ (no employees) | ✓ |
| Annual cost (approx.) | Lower | Higher |
| Best for | Sole proprietors | Contractors with employees |
Frequently Asked Questions
What is a workers' comp ghost policy in California?
Do I need a ghost policy as a sole proprietor in California?
What is California SB 216?
How much does a ghost policy cost in California?
Can I use a ghost policy to satisfy a client's insurance requirement?
How fast can I get a ghost policy certificate of insurance?
What happens if my CSLB license lapses because I don't have workers' comp?
Is a ghost policy the same as a workers' comp exemption?
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Ghost Policies for California Contractors — Every County
We write ghost policies for sole proprietor contractors across all of California. Same-day certificate of insurance available in every county.