49% of California's contractors carry no workers' comp coverage.

It's legal and most homeowners have no idea. A California contractor with no employees can file a workers' compensation exemption with the CSLB instead of carrying a policy. Our analysis of the state's licensing file finds that 49% of all active, CLEAR-status contractors are exempt. In the trades homeowners hire most, the rate runs higher still: 57.1% of general building licensees have no coverage on file.

Why it matters: the exemption is only valid while the contractor truly works alone. The moment an "exempt" contractor brings a helper onto your property, that worker is uninsured and if they're injured, the homeowner's liability exposure is real. The CSLB itself flags this as a top complaint scenario.

Three questions that protect you

1. "Are you workers'-comp exempt, or do you carry a policy?" Every profile in our contractor directory shows the workers' comp status from CSLB records, so you can check before you call.

2. "Will anyone besides you ever be on my property?" If an exempt contractor uses helpers, day labor, or a "cousin who helps out," walk away or require proof of coverage first.

3. "Can you send a certificate of insurance?" For any multi-person crew, ask the insurer to send the certificate directly. Our bond guide covers the rest of the paperwork worth checking and note that the $25,000 contractor bond does not cover injured workers.