New insurance requirements are now in effect for 6,000 licensed roofing contractors in California. Beginning January 1, 2007, all active licensees holding the Roofing (C-39) classification must have either a valid Certification of Workers' Compensation Insurance or a valid Certification of Self-Insurance on file with the Contractors State License Board (CSLB). Recent legislation amended Section 7125 of the Business and Professions Code to require that all Roofing (C-39) contractors carry workers' compensation coverage effective January 1, 2007, regardless of whether or not they have employees. Failure to have one of the required certifications on file with the CSLB will result in:
- The removal of the Roofing (C-39) classification from a license with multiple classifications; or
- The suspension of a license where the sole classification is the Roofing (C-39) classification
No exemptions to the Workers' Compensation Insurance requirement will be granted effective January 1, 2007. Inactive Roofing (C-39) contractors will not be subject to this requirement as long as the license remains inactive. In order to return to active status, they would need to have one of the required certifications on file with the Board.
The new all also requires insurers who issue workers' compensation insurance to Roofing (C-39) contractors to perform an annual payroll audit for the contractor. The insurer may impose a surcharge on the policyholder for the audit. The new workers' compensation insurance requirements imposed by AB 881 will remain in effect until January 1, 2011.
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