California Business Insurance Guide › Workers' comp
California Workers' Comp: A Guide for Employers
Every California employer has to carry workers' compensation insurance or be approved to self-insure (Labor Code §3700). That covers part-time, seasonal and family employees, and it can cover workers you pay on a 1099 if they don't pass the state's ABC test. These guides take you from "do I need it?" through pricing, the annual audit and what happens after an injury. To get a quote, start at business insurance.
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Everything You Need to Know About California Workers' Comp
From mandate requirements and SB 216 updates to premium audits and injury reporting, get expert clarity on protecting your business and workforce.
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Do you need it, and for whom?
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Do I need workers' comp insurance in California? Who has to carry it, and what it costs to go without.
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Do 1099 contractors need workers' comp? AB 5 and the ABC test How a misclassified contractor turns into payroll at audit.
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SB 216: the 2028 workers' comp requirement for contractors Every CSLB licensee, including sole owners with no employees, from January 1, 2028.
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Workers' comp for farm labor Seasonal crews, H-2A workers and farm labor contractors.
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Getting covered
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How to get workers' comp insurance for your California business The steps, what underwriters ask and where coverage comes from.
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How your premium works
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How workers' comp premiums are calculated: class codes, rates and your experience mod Why the right class code matters more than almost anything else.
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Workers' comp premium audits What the auditor asks for, what changes your bill and how to dispute a result.
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10 ways to lower your business insurance premium Several of them apply directly to comp.
WCIRB updates its advisory rates and experience-rating figures for policies starting each September 1, so check the date on any number you read.
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After an injury
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What to do after a workplace injury in California Step by step for employers and employees.
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Insurance claim timeline in California What happens after a claim is filed.
Need a workers’ comp quote, audit help, or a second opinion on your rates? TSM is an independent agency — we compare carriers to keep your business covered and compliant. Call (209) 524-6366 (Modesto) or (530) 221-3031 (Redding).
Related guides
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Employment practices liability (EPLI): claims comp doesn't cover, like wrongful termination
Frequently Asked Questions
Clear answers to essential California Workers' Comp Guide
Is workers' comp required in California if I have one employee?
Yes. The requirement starts with the first employee, part-time included (Labor Code §3700). See do I need workers' comp.
Do I need workers' comp for independent contractors?
Not if they're genuinely independent, but California presumes a worker is an employee unless the ABC test is met, and an auditor can add misclassified contractors' pay to your premium. Read 1099 contractors and AB 5.
Why did my workers' comp bill go up after the policy ended?
Usually the premium audit. Your deposit premium is based on estimated payroll, and the audit charges for actual payroll by class code. See workers' comp premium audits.
Do contractors with no employees need workers' comp?
Under SB 216, as delayed by SB 1455, every CSLB-licensed contractor will need a workers' comp policy from January 1, 2028, with or without employees (joint ventures with no employees are the only exemption). Until then, a contractor with no employees can file an exemption with the CSLB unless the license includes a C-8, C-20, C-22, C-39 or D-49 classification. See SB 216.
Get a workers' comp quote from an independent agency
We'll check your class codes, compare carriers, and help you get ready for audit.
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