Workers’ Compensation Insurance for Contractors & Construction Companies

Protect Your Crew. Protect Your Company.

Stay Compliant.

Calrisk Insurance Center provides workers’ compensation insurance for contractors across Southern California—helping builders, subs, and trades stay compliant, control costs, and protect the people who keep the job moving.



If you’ve got a crew, you need workers’ comp. And in California, that’s not a suggestion—it’s the law. Whether you’re a general contractor in Los Angeles or a roofing crew in Riverside, workers’ compensation coverage isn’t optional. It’s how you protect your business from lawsuits, protect your team from financial hardship, and meet the strict requirements of state regulators and project contracts.

What Is Workers’ Compensation Insurance (and Why It Matters for Contractors)

Workers’ comp insurance covers medical care, wage replacement, and other benefits when your employees are injured or become ill due to their work. In the construction industry—where risks run high and jobsite injuries are more common—this coverage is essential.


In California, any contractor with employees must carry workers’ comp insurance. Even some license classifications without direct employees—like Roofing (C-39)—are required to carry coverage because of the job’s high-risk nature.


A fall from a scaffold, a nail gun accident, a back injury from hauling materials—these aren’t hypotheticals. They’re realities in construction. With proper coverage, those medical bills don’t land on your desk or your employee’s family.

What Does Workers’ Comp Cover for Construction Companies?

If your employee gets hurt on the job, workers’ comp helps with:

01.

Medical treatment

Hospital bills, follow-up care, rehab

02.

Wage replacement

A portion of lost wages during recovery

03.

Disability benefits

If the injury results in long-term limitations

04.

Employer liability protection

Should the employee file a lawsuit

05.

Death benefits

Financial support for dependents if the worst happens

Example: A carpenter falls from a ladder and breaks their arm. Workers’ comp covers the ER visit, physical therapy, and lost wages during recovery—without legal complications or personal expense.

Why Construction Requires Special Attention

Construction work consistently ranks among the most dangerous industries in California. Between ladders, power tools, heavy machinery, and moving materials, accidents happen fast.

Your premium is based on:

  • Payroll size
  • Trade classification codes (e.g. roofing, painting, framing)
  • Experience Modification Rate (EMR) – A score based on past claims

Roofers pay more than painters. Larger crews cost more than smaller ones. And companies with clean safety records often earn lower rates.

Example: California contractors pay an average of $2.15 per $100 of payroll for workers’ comp. But rates vary widely depending on your specific trade and claim history.

A group of construction workers are giving each other a high five.

What If You Don’t Have Coverage?

The penalties are steep:

  • Fines from the California DIR
  • Risk of lawsuits for medical bills
  • Projects lost due to lack of valid certificates
  • Personal liability in the event of serious injuries

Even general contractors can be on the hook for uninsured subcontractors. That’s why most project owners require proof of workers’ comp before letting you on the job.

Workers’ Comp Services You Only Get at Calrisk

We don’t just issue a policy and disappear. Our full-service approach helps you manage your workers’ comp program so you’re not overpaying—or leaving yourself exposed.



Here’s what we do differently:

  • Annual Payroll Audits

    We help you prep so you don’t get overbilled

  • EMR Review & Guidance

    We show you how to keep your rate low

  • Fast Certificates

    Keep jobs running without delays

  • Audit Support

    We help you respond quickly and correctly

  • Claims Follow-Through

    We track claims so nothing gets missed

  • Partner Bookkeeping Services

    Stay organized and compliant

     Learn more about our bookkeeping services

Sole Proprietors, Subs & Special Cases

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Sole Proprietor with No Employees?

You may qualify for exemption in California—but beware: hiring subcontractors without coverage puts you at risk.

A black and white icon of a certificate with a check mark on it.

Ghost Policies

Need a certificate but have no payroll? Ask us about ghost workers’ comp options—ideal for sole owner-operators bidding commercial jobs.

A black and white drawing of an umbrella with a check mark on it.

Uninsured Employee Injury?

You could be personally liable for tens of thousands in medical costs and penalties. Don’t roll the dice.

Need Help Figuring It Out? That’s What We’re Here For.

Workers’ comp can feel complicated, especially if you’re scaling fast or just starting out. We’re here to make it clear—and make sure your policy actually protects what you’ve built.

FAQs About Workers’ Compensation for Contractors

  • Do contractors need workers’ comp insurance in California?

    Yes—if you have employees, workers’ comp is legally required. Even certain license classifications like Roofing (C-39) must carry coverage regardless of whether employees are present. California takes this seriously, and failure to comply can result in penalties, license suspension, or worse.

  • What if I don’t have employees—do I still need it?

    Possibly. Sole proprietors and certain partnerships may be able to file for exemption, but many general contractors will still require you to carry a policy or show proof of exemption. Some trades, like roofers, are required to carry coverage even with no payroll. We can help determine your options, including whether a “ghost policy” might make sense for showing coverage without payroll exposure.

  • What does workers’ comp insurance actually cover?

    It covers medical expenses, wage replacement, rehabilitation, and—if necessary—death benefits for employees injured on the job. It also protects your business from lawsuits related to workplace injuries. For example: if a framer falls off scaffolding, workers’ comp pays the hospital bills and partial lost wages while they recover.

  • How much does workers’ comp cost for construction companies in California?

    Rates vary depending on your payroll size, trade classification (risk level), and claims history. On average, construction companies in California might pay around $2.15 per $100 of payroll, but high-risk trades like roofing or demo work cost more. We’ll help you understand your rate and how to lower it.

  • How can I reduce my workers’ comp premium?

    Maintaining a clean claims history, implementing safety training, and conducting regular jobsite reviews can help. We also help clients with workers’ comp payroll audits to make sure you’re not overpaying. Through our bookkeeping services, we can help keep your records organized and audit-ready.

  • What happens if I don’t have workers’ comp and someone gets hurt?

    You could face severe financial penalties, civil lawsuits, and even criminal charges. The California Labor Code is strict—don’t take the risk. Having a policy in place is one of the most important protections for your team and your business.

  • What if I use subcontractors—do I need workers’ comp for them?

    Not usually, but if a subcontractor is uninsured and gets injured, the responsibility may fall on you. That’s why it’s critical to collect up-to-date certificates of insurance from all subs and keep them on file.

  • Does Calrisk help with audits and compliance?

    Yes—beyond placing your policy, we assist with annual payroll audits, help you stay compliant, and provide Certificates of Insurance quickly when jobs or general contractors request them. We're here to make your life easier, not just sell a policy.