"Bonded" and "Exempt From Workers' Comp": What a Contractor's License Record Means for You
Two lines on a California contractor's license record are easy to misread. "Bonded" means the contractor has the required $25,000 license bond — a fund for consumers harmed by license-law violations or fraud, shared across all of the contractor's jobs, and often not enough for a large project. It is not insurance for poor work, and it pays nothing for injuries. "Exempt" from workers' compensation means the contractor told the Contractors State License Board it has no employees. That's legal for many one-person businesses — but if a crew shows up anyway and someone is hurt on your property without coverage, CSLB warns that you could be financially liable, and your homeowner's insurance may or may not cover it. The fix is simple: ask who will be working on your home, and get the insurance in writing. Both lines show on every contractor profile in Cali-Graf, the free directory built by Cali Energy, a Los Angeles solar and roofing contractor.
The license bond: what it is
| Question | Answer |
|---|---|
| How much? | $25,000 since January 1, 2023 |
| Who is it for? | Consumers damaged by defective construction or other license-law violations, and employees owed unpaid wages |
| Per job? | No — one amount for all the contractor's jobs during the life of the bond |
| Enough for my project? | Often not: CSLB warns it's often not enough for multiple complaints, or for a project worth more than the bond |
| Does it pay for injuries? | No — that's workers' compensation |
A bond claim generally needs a license-law violation or fraud, not just a disagreement about quality. Bond lapses are also the most common reason licenses get suspended: in Cali-Graf's directory of Southern California solar, roofing and electrical contractors, 508 licenses were suspended for the contractor bond as of October 2026. A license record shows the bond's amount, start date and surety company; a lapsed bond shows up as a suspension.
Workers' comp: "insured" vs "exempt"
| The record says | What it means | What to do |
|---|---|---|
| Insured | A workers' comp policy is on file, with the insurer and the end date | Check the end date is after your project; ask for the certificate |
| Exempt | The contractor declared it has no employees | Ask who will actually be on your roof or in your attic |
| Suspended — workers' comp | The policy lapsed | Don't sign until it's fixed |
"Exempt" is common — 42% of active licenses in Cali-Graf's directory as of October 2026 — and legitimate for an owner who does the work alone. Three things to know:
- Some trades can't be exempt. Roofers (C-39) must carry workers' comp whether or not they have employees, as must concrete, HVAC, asbestos abatement and tree service contractors.
- Helpers change the picture. If an "exempt" contractor brings workers, they're supposed to be covered. If one is hurt on your property without coverage, CSLB says you could be financially liable for the injuries and rehabilitation.
- The rule is changing. California has set January 1, 2028 as the date workers' comp becomes required for all licensed contractors, employees or not.
What to ask before you sign
1. "Who will be working on my home — your employees, you alone, or subcontractors?"
- "Please send your workers' comp certificate," or the insurer's name, and check that it runs past your project's end.
- "Do you carry general liability insurance?" It isn't required by law, but CSLB notes it covers damage to your property.
- Call your own insurer and ask what your homeowner's policy covers if a worker is injured on your property.
For a solar job, the roof part often goes to a roofer and the electrical part to an electrician: each needs its own valid license — and a roofer must be insured. How to check a whole company before signing is in how to check a solar contractor's license and permits.
Where to see it
Every license record on cslb.ca.gov shows the bond and workers' comp status. On a Cali-Graf contractor profile, the first screen shows Workers' comp insured or exempt — no employees reported and the bond amount, and the License, bond & insurance card has the bond company, the workers' comp type, insurer and end date, with the date the record was last checked against CSLB. Cali-Graf's directory is developed by Cali Energy, and nobody can pay to appear or move in its lists.
Look up the bond and workers' comp on your contractor's license now.
Frequently asked
What does "exempt from workers' comp" mean for a contractor in California?
Am I liable if a contractor's worker gets hurt on my property?
What does a $25,000 contractor bond cover?
Does a contractor bond cover bad workmanship?
Do roofers need workers' compensation in California?
Related reading
Sources & methodology
Product facts on this page come from Cali-Graf's own help center and the pages linked below; figures in examples come from the stated inputs. Features, limits and supported utilities change; each was verified October 16, 2026.
- Contractors State License Board — How do I find the right licensed contractor?
- Contractors State License Board — Bond requirements
- Contractors State License Board — Fast Facts: A Guide to Contractor License Bonds (2025)
- Contractors State License Board — Workers' compensation stakeholder meeting packet, November 2024
- California Business & Professions Code §7125 — workers' compensation certificate and exemption
- Cali-Graf — Check a contractor license
See the bond and workers' comp before you sign
Cali-Graf's license check shows the bond amount, whether workers' comp is insured or exempt, the insurer and the end date, next to the contractor's permits. Planning solar or a new roof in Los Angeles? Cali Energy (CSLB #1032379), which develops Cali-Graf, can give you an estimate. General information from CSLB's guidance, not legal or insurance advice.
Prepared by Cali Energy, October 16, 2026. This article is for general educational purposes only and is not legal, tax, financial, engineering, or utility advice. Rates, incentives, codes, permit requirements, equipment specifications, prices, and program terms may change; figures and timelines are estimates, not guarantees. Confirm current requirements with the applicable utility, AHJ, program administrator, manufacturer, or a licensed professional. See our Content Disclaimer. Cali Energy · 19201 Parthenia St, Unit E, Northridge, CA 91324 · CSLB #1032379 (B, C-10, C-39)