Do You Need Workers’ Comp as a Sole Proprietor?
In most states, sole proprietors with no employees are exempt — but California requires workers’ comp for all roofing contractors, and most GCs won’t hire you without it.
In most states, a sole proprietor with no employees is exempt from carrying workers’ compensation. But there are two big exceptions: California requires it for all roofing (C-39) contractors even with zero employees, and most general contractors will refuse to hire you without it regardless of the law.
The General Rule
In Arizona, Nevada, and Texas, sole proprietors and owners with no W-2 employees are generally not required to carry workers’ comp for themselves. The requirement kicks in the moment you hire your first employee.
The California Roofing Exception
California requires every C-39 roofing contractor to carry workers’ comp — even a one-person operation. There is no sole-proprietor exemption for roofers. This is one of the most common reasons roofing licenses get suspended.
Why You Might Want It Anyway
- Most general contractors require a workers’ comp certificate before they let you on site
- It pays your medical bills and lost wages if you are hurt on the job
- A ghost policy (owner-excluded) satisfies the COI requirement at low cost