Construction regulation 5(3) and the Sole Proprietor

The Sole Proprietor, or "one man" business is suffering largely due to the misinterpretation of this regulation.

"to ensure that every contractor is registered and in good standing with the compensation fund or with a licensed compensation insurer prior to work commencing on site".

A sole proprietor does not have to, in fact cannot register as an employer in terms of COID, as he/she has no employees to insure.
Yet many safety officers and even client agents fail to understand this.

Then how does one, as principal contractor comply with regulation 5(3)(f) ?

In my opinion, a sole proprietor working as a contractor, should be treated as a Fixed Term Contract Employee, and in the event of an accident, his/her principal contractor must submit the claim to SACF, as if he/she was an employee. One also need to consider the test for "independence" of the contractor.

What is your opinion / view?