Protect your team, meet California requirements and keep your coverage in line with the work you actually do.
In California, workers’ compensation is required for every employer with at least one employee, including part-time employees. There’s no minimum headcount.
Corporate officers and directors who own at least 15 percent of the company, and LLC managing members, can generally exclude themselves by signing a waiver with the insurer. The business still needs coverage for every other employee. Sole proprietors with no employees usually don’t have to cover themselves, except licensed contractors, who must carry workers’ compensation to keep a CSLB license active since January 1, 2026.
Not sure where you stand? Tell us about your team and we’ll walk you through it.
Reasonable and necessary medical care for work-related injuries and illnesses.
Partial wage replacement when an injured employee can’t work while recovering.
Support to help an injured employee recover and return to work.
Protection if your business is sued over a workplace injury, included with most policies.
Your premium is built from your business, not a one-size-fits-all price.
Your estimated annual payroll, split by the type of work each employee does.
Each job classification has its own rate based on how risky the work is.
Your experience modification factor compares your claims history with similar businesses.
Past claims can affect the options and pricing carriers offer.
Uninsured subcontractors can be added to your payroll at audit.
At the end of each policy term, your carrier checks your actual payroll against the estimate. We help you get organized so there are fewer surprises.
California requires workers’ compensation insurance for every employer with at least one employee, including part-time employees (California Labor Code § 3700). There’s no minimum headcount: coverage is required from your first hire, and going without it is a crime.
Most employers buy a policy from a private insurance company or from State Compensation Insurance Fund (State Fund), a state-created insurer that competes with private carriers. Large employers can also self-insure with approval from the state.
In California, the question isn’t how many people you employ but whether you employ anyone. A few points still trip up employers:
In California, corporate officers and directors who own at least 15 percent of the company’s stock, and managing members of an LLC or general partners, can generally exclude themselves from coverage by signing a written waiver with the insurance company (California Labor Code §§ 3351 and 3352). The waiver is filed with your carrier, not the state.
A few things to know before you sign one:
A sole proprietor with no employees generally isn’t required to cover themselves, and owners can usually choose to be included on the business’s policy. There’s one big exception: since January 1, 2026, every contractor licensed by the California Contractors State License Board (CSLB) must carry workers’ compensation to keep the license active, even with no employees (Senate Bill 216).
Outside construction, many clients and landlords still ask for proof of workers’ compensation in their contracts, so solo owners often carry a policy anyway.
California is strict about who counts as your employee. Under California Labor Code § 2750.5, a worker doing work that requires a contractor’s license is presumed to be an employee unless they hold that license. In practice, if you hire an unlicensed subcontractor and one of their workers is hurt, the claim can land on your policy.
That’s also why your carrier looks at subs during the audit. If you paid a subcontractor who can’t show valid workers’ compensation for the period they worked for you, the auditor may add what you paid them to your payroll and charge premium on it.
Workers’ compensation benefits are set by California law, not by your policy. An injured employee can receive:
Weekly minimums and maximums change every year, and the Division of Workers’ Compensation publishes the current figures. We’ll explain what applies to your situation.
A standard policy has two parts. Part One pays the benefits your state’s law requires. Part Two, employer’s liability, responds when the business itself is sued over a workplace injury, for example a lawsuit from a family member or a claim brought through a third party who was sued and turns to you.
Employer’s liability has its own limits: usually one per accident, one per employee for disease and an overall policy limit for disease. Many general contractors and umbrella carriers require higher employer’s liability limits than the policy’s default.
Workers’ compensation insurance is priced on payroll, not head count. The basic math works like this:
An e-mod below 1.00 means fewer losses than average and brings the premium down; above 1.00 means more and pushes it up. In California, the WCIRB calculates the e-mod once a business’s premium over the experience period meets the WCIRB’s eligibility threshold, which it updates each year.
Because the premium at the start of the term is based on your estimated payroll, the carrier checks the real numbers when the term ends.
The most common audit surprises are payroll that was higher than estimated, subcontractors who couldn’t show coverage and employees whose actual job didn’t match the original class code. Accurate estimates and good sub tracking help avoid these.
Going without required coverage in California is expensive and can shut you down:
California employers have a few notice duties that also affect who treats an injured employee:
If the notice isn’t posted, an injured employee may be able to see their own doctor from the start, outside your carrier’s network, which usually makes claims harder to manage and more costly.
Fewer injuries and earlier returns to work help both your team and your experience mod. A few habits make a difference:
When you set up workers’ compensation insurance, the benefits are set by California law, not something you choose a limit for. Your real decisions are:
We walk through each of these when we set up a policy, and review them at every renewal.
Send us the requirements from your contract, lease or credentialing packet, including the certificate holder, additional insured and waiver of subrogation, so we can review your request.
Yes. In California, every employee needs coverage from the first hire, including part-time and seasonal workers.
Corporate officers and LLC members are usually covered and included in your premium unless they sign a valid waiver with the insurer. We can review your situation with you.
Yes. California requires workers’ compensation as soon as you have one employee. Many clients, landlords and project owners also require proof of coverage in their contracts.
Payroll records by employee and job type, a list of job duties, and certificates of insurance for any subcontractors you paid during the policy term.
Use our certificate request form with the certificate holder’s name and address and any contract requirements, and we’ll review your request.
Officers and directors who own at least 15 percent of the company, and LLC managing members or general partners, can generally exclude themselves by signing a written waiver with the insurer. Each person signs their own, and the business still needs coverage for everyone else.
You can be. Under California Labor Code § 2750.5, a worker doing licensed work for an unlicensed subcontractor can be treated as your employee. Checking every sub’s license and workers’ compensation on the CSLB lookup, and collecting certificates, is your best protection.
Yes, in a sense. State Compensation Insurance Fund (State Fund) is a state-created insurer that sells workers’ compensation alongside private carriers. We compare State Fund and private carriers so you can see the differences.
If the required DWC notice isn’t posted, an injured employee may be able to see their own doctor from the start, outside your carrier’s medical provider network. That usually makes claims harder to manage and more costly, and missing notices can also bring penalties.
Usually because actual payroll was higher than estimated, an employee’s work was classified differently, or you paid subcontractors who couldn’t show their own coverage. Ask us to review the audit statement with you if something looks wrong.
It’s a factor that compares your claims history with what’s expected for similar businesses. A mod below 1.00 lowers your premium and a mod above 1.00 raises it. Smaller employers may not have one until they meet the eligibility threshold.
For contractors, the CSLB license lookup shows whether a license holder has workers’ compensation on file. For other businesses, the Workers’ Compensation Insurance Rating Bureau (WCIRB) offers a coverage lookup. Either is a useful second check alongside the certificate a subcontractor gives you.
Tell us about your team and the work you do. We’ll compare options from multiple carriers.
Tell us a little about your business. A licensed broker will follow up.
