The year 2023 has brought about important changes in California’s construction and contracting industry with the introduction of a new law that impacts specific types of contractors. The Business and Professions Code section 7125 has set forth a requirement that all active contractors under certain license categories, namely C-8 Concrete, C-20 Warm-Air Heating, Ventilating and Air-Conditioning, C-22 Asbestos Abatement, C-39 Roofing, and/or C-61/D-49 Tree Service, must carry workers’ compensation insurance or possess a valid Certification of Self-Insurance, regardless of whether they have employees. In this blog post, we delve into the details of this new law and how Insurance Incorporated can assist contractors in obtaining a No Employee Workers’ Compensation Policy to comply with these regulations.
Understanding the New Law
The updated California law, enacted under Business and Professions Code section 7125, aims to ensure the safety and well-being of contractors working in specific trades, even if they operate as sole proprietors without employees. This regulation extends the requirement of workers’ compensation insurance coverage or valid self-insurance certification to C-8 Concrete contractors, C-20 Warm-Air Heating, Ventilating and Air-Conditioning contractors, C-22 Asbestos Abatement contractors, C-39 Roofing contractors, and/or C-61/D-49 Tree Service contractors.
Importance of Compliance
Compliance with this law is vital for contractors falling under the specified license categories. Having adequate workers’ compensation insurance not only safeguards the contractor’s financial stability in the event of work-related injuries or illnesses but also demonstrates a commitment to ethical and legal business practices. Moreover, adhering to these regulations can prevent costly penalties and legal consequences that may arise due to non-compliance.
Insurance Incorporated: Your Partner in Compliance
Navigating the world of insurance and legal requirements can be daunting, but Insurance Incorporated is here to help. We understand the unique challenges that contractors face in California’s evolving regulatory landscape. Our team of experts specializes in providing tailored insurance solutions to meet the needs of contractors across various industries. We offer a full array of Contractors insurance products. We can offer General Liability, Business Auto, Property, Contractors Equipment, License Bonds, Bid Bonds, Permit Bonds and Performance and Payment Bonds, and so much more. For All Your Consturction Needs Think Insurance Incorporated.
No Employee Workers’ Compensation Policy
Insurance Incorporated is well-equipped to assist contractors who do not have employees and need to secure a No Employee Workers’ Compensation Policy to comply with the new law. Our dedicated professionals can guide you through the process, ensuring that you obtain the coverage you need without unnecessary complexities. We work with reputable insurance providers to offer comprehensive and affordable solutions that align with your business goals.
Conclusion
The 2023 California law under Business and Professions Code section 7125 has introduced important changes for contractors in specific license categories. It is essential for C-8 Concrete contractors, C-20 Warm-Air Heating, Ventilating and Air-Conditioning contractors, C-22 Asbestos Abatement contractors, C-39 Roofing contractors, and/or C-61/D-49 Tree Service contractors to carry workers’ compensation insurance or possess a valid Certification of Self-Insurance, irrespective of whether they have employees. Insurance Incorporated is committed to supporting contractors in their compliance efforts by offering No Employee Workers’ Compensation Policies that cater to their unique needs.
For more information on how Insurance Incorporated can assist you in obtaining the right insurance coverage for your contracting business, contact us at 877-428-8778.
Disclaimer: This blog post is for informational purposes only and does not constitute legal or insurance advice. Contractors are encouraged to consult with legal and insurance professionals to ensure compliance with applicable laws and regulations.
