CA Workers Compensation Insurance: Everything Employers Need to Know in 2025
Running a business in California is rewarding — but it also comes with serious responsibilities. Chief among them? Protecting your team. And in the Golden State, that means securing the right workers compensation insurance coverage.
Whether you're a startup hiring your first employee or an established business expanding your team, CA workers compensation insurance isn’t optional — it’s the law. But beyond legal compliance, having the right policy in place also protects your employees, your business, and your peace of mind.
In this guide, we’ll walk you through everything you need to know about workers comp insurance in CA, including:
- What it covers
- Why it matters
- Where to purchase workers compensation insurance
- The best
workers compensation insurance companies in California
- How to avoid fines and keep your business compliant
What Is Workers Compensation Insurance and Why Is It Required in CA?
Workers compensation insurance provides medical, wage, and legal benefits to employees who are injured or become ill because of their job. In California, every business with at least one employee — even part-time — is required by law to carry workers comp coverage.
Under California Labor Code Section 3700, failure to provide this insurance is considered a criminal offense and can result in penalties, business closure, and even jail time.
Official CA Department of Industrial Relations – Workers’ Compensation Overview
What Does CA Workers Compensation Insurance Cover?
Here’s what a standard policy includes:
- Medical care for work-related injuries or illness
- Temporary disability benefits while the employee recovers
- Permanent disability benefits, if the injury results in lasting impairment
- Supplemental job displacement benefits, such as retraining
- Death benefits to the employee’s dependents if the injury is fatal
It also helps employers avoid costly lawsuits by creating a no-fault system. Employees receive benefits regardless of who caused the injury, and in return, they give up the right to sue the employer in most cases.
This coverage isn’t just about compliance — it’s an essential layer of workers compensation liability insurance that protects your business from financial risk.
Who Needs Workers Compensation Insurance in CA?
You do — if you:
- Have even one employee
- Hire part-time, seasonal, or temporary workers
- Run a LLC or corporation with active officers performing work
- Operate in high-risk industries like construction, manufacturing, healthcare, or delivery
Even sole proprietors or freelancers might benefit from a policy if they subcontract labor or want added protection when working with larger clients.
How to Get Workers Comp Insurance in CA
Wondering how to get workers comp insurance for your business? You have a few options:
1. Private Insurance Carriers
This is the most common route. Many workers compensation insurance companies in California offer competitive coverage tailored to different industries.
Some reputable names include:
- The Hartford
- Travelers
- AmTrust
- State Compensation Insurance Fund (SCIF)
- Employers Holdings
Compare Carriers via CA’s Official Workers’ Comp Ratings Bureau
Tip: Working with an independent insurance agency like RVIS gives you access to multiple quotes from top carriers — without the guesswork.
2. State Fund (SCIF)
If your business is high-risk or has been denied by private insurers, California’s State Compensation Insurance Fund (SCIF) is a public option.
Visit SCIF’s Website to Learn More
3. Self-Insurance (For Large Businesses)
If your company meets strict financial and regulatory criteria, you may apply to become self-insured through the California Office of Self-Insurance Plans.
This is typically for large enterprises with internal risk management departments.
How Much Does Workers Comp Insurance Cost in California?
The cost of workers comp insurance CA depends on:
- Your industry’s risk level
- Number of employees and total payroll
- Your company’s claims history
- Safety protocols and workplace conditions
On average, rates in California range from $1.50 to $2.50 per $100 of payroll — but it can be much higher for high-risk occupations (like roofing or trucking).
Example: A delivery company may pay significantly more than a marketing agency due to the greater likelihood of workplace injuries.
Penalties for Not Having Workers Comp in California
Skipping coverage isn’t worth the risk. Here’s what can happen:
- Fines up to $100,000
- Misdemeanor criminal charges
- Stop-work orders (your business may be shut down)
- Personal liability lawsuits if an employee is injured
CSLB License Lookup & Legal Resources
Where to Purchase Workers Compensation Insurance in California
When deciding where to purchase workers compensation insurance, you want more than just a quote — you want expert guidance from a licensed broker who understands California’s complex compliance landscape.
At RVIS Insurance Agency, we make the process easy by:
- Shopping the best policies from top-rated insurers
- Tailoring coverage to your exact industry and risk profile
- Helping you stay compliant with
workers compensation liability insurance requirements
- Explaining premiums, deductibles, and claims in plain English
Frequently Asked Questions (FAQs)
Q: Is workers compensation required in California for remote employees?
Yes. Even if your employees work from home, they are still covered under California law and must be included in your policy.
Q: Can I use my general liability insurance instead of workers comp?
No. General liability insurance protects against third-party claims — not employee injuries. Workers compensation is a separate, mandatory policy.
Q: How do I file a workers comp claim in CA?
Employees must notify you within 30 days of an injury, and you must file a claim with your insurance carrier. You also must provide a claim form (DWC 1) within one working day.
Q: Are officers and directors required to be covered?
ButtonIn most cases, yes — unless you file an exemption and they don’t perform any physical labor. Talk to an insurance expert to make sure you meet requirements.
Final Thoughts: Don’t Leave Your Business Exposed
CA workers compensation insurance isn’t just a regulatory checkbox — it’s a smart, proactive way to protect your employees, your finances, and your long-term success.
If you're unsure how to get workers comp insurance or want to compare rates, RVIS Insurance Agency is here to help. With decades of experience serving California businesses, we’ll guide you step-by-step and get you covered quickly — and correctly.
Get a Free Quote from RVIS Insurance Agency
Don't guess your way through compliance. Let our expert brokers shop the best
workers compensation insurance companies California has to offer — all in one place.
