Your workers' comp costs in California depend on your industry and the size of your team. Here are the answers to the questions business owners ask most often.
Best Workers' Comp Insurance in California
With rates starting at $7 monthly, NEXT, The Hartford and Simply Business offer the cheapest and best workers' comp insurance in California.
Compare top California workers’ comp insurance providers and find your ideal coverage.
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Updated: October 27, 2025
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Best California Workers' Comp Insurance: Fast Answers
What are the best and cheapest workers' comp insurance providers in California?
NEXT offers the top cheap workers' compensation insurance in California. The following are the state's cheapest and best workers' comp insurance providers and their average monthly rates:
- NEXT: $76
- The Hartford: $77
- Simply Business: $80
- Coverdash: $81
- biBerk: $83
Is workers’ comp insurance required in California?
California requires workers' comp for all employers starting when you hire your first employee. Key exemptions include sole proprietors (except roofers), independent contractors meeting ABC test requirements, corporate officers with 10%+ ownership and family members. Violations lead to criminal charges, $10,000 fines and possible jail time.
How much does workers’ comp insurance cost in California?
Workers compensation insurance costs in California average about $82 monthly for a two-person business or around $41 per employee. Monthly costs vary widely depending on your industry and payroll, ranging from $7 ($4 monthly per employee) to $939 ($470 monthly per employee).
How do you get workers’ comp insurance in California?
You can get workers' comp coverage in California by:
- Buying from a licensed private insurer in California
- Purchasing through the State Compensation Insurance Fund (State Fund)
- Becoming self-insured, if you meet the state’s financial requirements
Many business owners compare quotes online or through brokers to get the best rate and compliance support.
What does California workers’ comp insurance cover?
Workers’ compensation in California covers:
- Medical care for job-related injuries or illnesses
- Temporary or permanent disability benefits for lost wages
- Supplemental job displacement benefits for retraining if an employee can’t return to their old job
- Death benefits for dependents of workers who die from a work-related injury
Best Workers' Comp Insurance Companies in California
NEXT came out on top in our research for the best workers' comp insurance in California, with exceptional customer service and many unique coverage choices. The Hartford and Simply Business are solid alternatives for California small business owners. Both are affordable and have good reputations.
| NEXT Insurance | 4.59 | $76 | 1 | 2 |
| The Hartford | 4.58 | $77 | 2 | 3 |
| Simply Business | 4.51 | $80 | 5 | 1 |
| Coverdash | 4.44 | $81 | 6 | 2 |
| biBERK | 4.42 | $83 | 2 | 5 |
| Nationwide | 4.41 | $90 | 2 | 4 |
| Progressive Commercial | 4.38 | $80 | 7 | 5 |
| Hiscox | 4.36 | $80 | 4 | 6 |
| Thimble | 4.35 | $78 | 8 | 5 |
| Chubb | 4.25 | $94 | 3 | 4 |
How Did We Determine These Rates and Rankings?
These rates are estimates based on MoneyGeek's analysis of small businesses with two employees across 79 major industries. Actual rates vary based on your business location, industry risk factors, claims history, coverage limits and individual insurer underwriting criteria. Contact insurers directly for personalized quotes.
Get Matched to Top Workers' Comp Insurers in California
Select your industry and state to get a customized California workers' comp quote from your top provider match.
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LEARN MORE ABOUT THE BEST BUSINESS INSURANCE IN CALIFORNIA
Explore the best business insurance providers in California through our guides:
Best California Workers’ Comp Insurance Company Reviews
Here's a closer look at our top picks for workers' comp insurance in California.
NEXT
Best Workers' Comp Insurance in California
MoneyGeek Rating
4.6/ 5
4.4/5Affordability
4.7/5Customer Experience
4.8/5Coverage Options
Average Monthly Worker's Comp Premium
$76We analyzed thousands of workers' compensation quotes from insurers operating in California across 79 industriesWorkers' Comp Digital Experience Score
4.7/5 (1st)Worker's Comp Customer Likelihood to Be Recommended to Others Score
4.8/5 (1st)
Simply Business
Best California Workers' Comp Insurance Coverage Options
MoneyGeek Rating
4.5/ 5
4.5/5Affordability
4.2/5Customer Experience
4.9/5Coverage Options
Average Monthly Worker's Comp Premium
$80We analyzed thousands of workers' compensation quotes from insurers operating in California across 79 industriesWorker's Comp Claims Process Score
3.7/5 (7th)Worker's Comp Customer Likelihood to Be Recommended to Others Score
4.2/5 (5th)
Cheapest Workers' Comp Insurance Companies in California
NEXT offers California's most affordable workers' comp insurance at $76 monthly ($915 annually), saving you $6 a month or 7% compared to the state average. The Hartford and Thimble are solid alternatives, with monthly rates below $80. The table below shows costs from all companies we analyzed.
| NEXT Insurance | $76 | $915 |
| The Hartford | $77 | $928 |
| Thimble | $78 | $939 |
| Hiscox | $80 | $955 |
| Simply Business | $80 | $956 |
| Progressive Commercial | $80 | $956 |
| Coverdash | $81 | $972 |
| biBERK | $83 | $1,000 |
| Nationwide | $90 | $1,081 |
| Chubb | $94 | $1,133 |
How Did We Determine These Rates?
These rates represent small businesses with two employees across 79 major industries and focus solely on workers' comp policies. Your actual premium depends on your business location, industry, employee count, claims history, coverage limits and other factors insurers consider.
Cheapest Workers' Comp in California by Industry
NEXT is the cheapest insurer for workers' comp at the industry level, with rates starting at $6 monthly for speech therapists. NEXT wins in 30 out of 79 industries we studied. NEXT performs best in marketing, food services and retail. The Hartford ranks the second-most affordable provider, with the cheapest pricing for pet, hospitality and contractor-focused businesses.
| Accountants | The Hartford | $21 | $249 |
| Ad Agency | NEXT Insurance | $16 | $195 |
| Beauty Salon | Thimble | $15 | $178 |
| Automotive | Simply Business | $121 | $1,446 |
| Auto Repair | The Hartford | $153 | $1,835 |
| Bakery | NEXT Insurance | $56 | $669 |
| Barber | NEXT Insurance | $15 | $176 |
| Candle | Thimble | $41 | $489 |
| Bounce House | The Hartford | $41 | $492 |
| Catering | biBERK | $84 | $1,007 |
| Cannabis | The Hartford | $86 | $1,037 |
| Cleaning | The Hartford | $49 | $584 |
| Coffee Shop | NEXT Insurance | $49 | $585 |
| Computer Programming | Simply Business | $29 | $347 |
| Construction | Thimble | $183 | $2,192 |
| Computer Repair | Progressive Commercial | $24 | $293 |
| Contractor | The Hartford | $171 | $2,048 |
| Consulting | Thimble | $31 | $370 |
| Courier | NEXT Insurance | $230 | $2,760 |
| Dental | Thimble | $11 | $138 |
| Daycare | Simply Business | $14 | $166 |
| Dog Grooming | Chubb | $83 | $1,000 |
| DJ | Thimble | $14 | $170 |
| Drone | Thimble | $27 | $329 |
| Ecommerce | NEXT Insurance | $22 | $263 |
| Engineering | The Hartford | $39 | $462 |
| Electrical | Simply Business | $59 | $711 |
| Florist | The Hartford | $62 | $744 |
| Excavation | NEXT Insurance | $111 | $1,330 |
| Food | Simply Business | $44 | $533 |
| Funeral Home | NEXT Insurance | $28 | $332 |
| Food Truck | NEXT Insurance | $48 | $574 |
| Home-based | NEXT Insurance | $10 | $122 |
| Gardening | Hiscox | $49 | $591 |
| Handyman | NEXT Insurance | $98 | $1,172 |
| Hospitality | Nationwide | $87 | $1,039 |
| Janitorial | NEXT Insurance | $50 | $605 |
| HVAC | The Hartford | $63 | $758 |
| Junk Removal | The Hartford | $147 | $1,760 |
| Jewelry | NEXT Insurance | $31 | $374 |
| Lawyers | NEXT Insurance | $54 | $646 |
| Lawn/Landscaping | Thimble | $38 | $461 |
| Manufacturing | NEXT Insurance | $61 | $734 |
| Massage | The Hartford | $15 | $183 |
| Marine | The Hartford | $154 | $1,842 |
| Moving | Simply Business | $271 | $3,248 |
| Mortgage Broker | Thimble | $15 | $174 |
| Painting | NEXT Insurance | $146 | $1,757 |
| Nonprofit | The Hartford | $32 | $387 |
| Party Rental | Thimble | $37 | $449 |
| Pest Control | Nationwide | $86 | $1,030 |
| Personal Training | Thimble | $26 | $312 |
| Pharmacy | Progressive Commercial | $6 | $78 |
| Pet | NEXT Insurance | $32 | $380 |
| Photography | Progressive Commercial | $18 | $211 |
| Plumbing | NEXT Insurance | $65 | $780 |
| Physical Therapy | Nationwide | $9 | $102 |
| Real Estate | The Hartford | $30 | $364 |
| Pressure Washing | NEXT Insurance | $87 | $1,039 |
| Restaurant | The Hartford | $64 | $766 |
| Roofing | NEXT Insurance | $847 | $10,163 |
| Retail | NEXT Insurance | $36 | $437 |
| Snack Bars | NEXT Insurance | $45 | $536 |
| Security | The Hartford | $54 | $653 |
| Startup | The Hartford | $13 | $159 |
| Software | NEXT Insurance | $27 | $321 |
| Spa/Wellness | NEXT Insurance | $18 | $214 |
| Speech Therapist | The Hartford | $6 | $72 |
| Tech/IT | NEXT Insurance | $28 | $334 |
| Transportation | Thimble | $236 | $2,832 |
| Travel | Nationwide | $8 | $101 |
| Tree Service | Simply Business | $228 | $2,732 |
| Tutoring | The Hartford | $10 | $120 |
| Trucking | NEXT Insurance | $278 | $3,332 |
| Veterinary | NEXT Insurance | $21 | $247 |
| Wholesale | The Hartford | $40 | $482 |
| Wedding Planning | Thimble | $29 | $350 |
| Welding | Thimble | $123 | $1,479 |
| Window Cleaning | NEXT Insurance | $214 | $2,569 |
How Much Is Workers' Comp Insurance in California?
California workers' comp insurance cost averages $82 monthly ($984 annually), about $8 more than the national average of $74. Based on industry fluctuations, monthly pricing ranges from $7 ($4 per employee) for speech therapists to $939 ($470 per employee) for roofers.
| Accountants | $23 | $271 |
| Ad Agency | $18 | $211 |
| Auto Repair | $169 | $2,028 |
| Automotive | $130 | $1,562 |
| Bakery | $60 | $719 |
| Barber | $16 | $188 |
| Beauty Salon | $16 | $194 |
| Bounce House | $45 | $543 |
| Candle | $44 | $532 |
| Cannabis | $94 | $1,123 |
| Catering | $82 | $983 |
| Cleaning | $54 | $652 |
| Coffee Shop | $52 | $627 |
| Computer Programming | $31 | $375 |
| Computer Repair | $26 | $317 |
| Construction | $200 | $2,406 |
| Consulting | $34 | $402 |
| Contractor | $185 | $2,215 |
| Courier | $251 | $3,011 |
| DJ | $15 | $185 |
| Daycare | $15 | $178 |
| Dental | $12 | $149 |
| Dog Grooming | $73 | $873 |
| Drone | $30 | $356 |
| Ecommerce | $24 | $291 |
| Electrical | $64 | $765 |
| Engineering | $42 | $504 |
| Excavation | $118 | $1,418 |
| Florist | $69 | $823 |
| Food | $47 | $567 |
| Food Truck | $51 | $613 |
| Funeral Home | $30 | $358 |
| Gardening | $53 | $631 |
| HVAC | $70 | $838 |
| Handyman | $104 | $1,250 |
| Home-based | $11 | $134 |
| Hospitality | $78 | $934 |
| Janitorial | $54 | $647 |
| Jewelry | $34 | $402 |
| Junk Removal | $157 | $1,880 |
| Lawn/Landscaping | $42 | $501 |
| Lawyers | $58 | $701 |
| Manufacturing | $66 | $792 |
| Marine | $168 | $2,018 |
| Massage | $16 | $195 |
| Mortgage Broker | $15 | $186 |
| Moving | $289 | $3,469 |
| Nonprofit | $35 | $425 |
| Painting | $156 | $1,875 |
| Party Rental | $41 | $487 |
| Personal Training | $28 | $334 |
| Pest Control | $77 | $927 |
| Pet | $34 | $409 |
| Pharmacy | $7 | $85 |
| Photography | $19 | $227 |
| Physical Therapy | $8 | $92 |
| Plumbing | $71 | $849 |
| Pressure Washing | $94 | $1,124 |
| Real Estate | $33 | $399 |
| Restaurant | $70 | $836 |
| Retail | $39 | $471 |
| Roofing | $939 | $11,271 |
| Security | $58 | $701 |
| Snack Bars | $48 | $580 |
| Software | $29 | $352 |
| Spa/Wellness | $19 | $232 |
| Speech Therapist | $7 | $80 |
| Startup | $15 | $175 |
| Tech/IT | $30 | $364 |
| Transportation | $255 | $3,055 |
| Travel | $8 | $93 |
| Tree Service | $247 | $2,961 |
| Trucking | $301 | $3,615 |
| Tutoring | $11 | $132 |
| Veterinary | $22 | $264 |
| Wedding Planning | $32 | $380 |
| Welding | $131 | $1,574 |
| Wholesale | $44 | $534 |
| Window Cleaning | $231 | $2,777 |
California Workers' Comp Insurance Cost Factors
These cost factors affect workers' compensation insurance rates in California:
WCIRB Independent System
California operates through the Workers' Compensation Insurance Rating Bureau (WCIRB), with roughly 700 unique industry classifications and an "open" rating system where insurers set their own rates, unlike most states using National Council on Compensation Insurance (NCCI). This creates more rate variation between carriers and bases workers' comp pricing solely on California's unique loss experience rather than national data.
SB 863 Reforms
The 2012 reform established Independent Medical Review (IMR) resolving treatment disputes in 40 days, Independent Bill Review (IBR) for billing disputes, and $150 lien filing fees that caused a large drop in new liens. These streamlined processes reduce administrative and legal costs that previously drove up workers' compensation premiums.
Cumulative Trauma Surge
Cumulative trauma claims rose from 29.4% to 37.5% of litigated claims (2010 to 2022), reaching nearly 50% in Los Angeles Basin, averaging $31,000 each with 57% litigation rates and costing 53% more than specific injury claims. This surge directly increases premiums, as these workers' comp claims are more expensive and difficult to defend.
Medical Provider Networks (MPN)
California's MPN program (effective 2005) allows employers to establish Division of Workers' Compensation (DWC)-approved provider networks with mandatory second or third opinion processes. MPNs reduce costs by directing injured workers to occupational medicine specialists, controlling medical expenses and facilitating faster return to work.
California State Fund (SCIF)
California's nonprofit State Compensation Insurance Fund (SCIF) serves as carrier of last resort and influences market pricing, with its 2022 9.5% rate reduction prompting private insurers to follow suit to remain competitive. SCIF stabilizes the market and effectively sets pricing benchmarks for all carriers.
Carve-Out Agreements
Since 1993, California permits labor-management carve-out agreements using alternative dispute resolution while maintaining statutory benefits. These reduce workers' comp costs through expedited dispute resolution, eliminating lengthy litigation and lowering legal expenses.
Recent Cost Pressures
The 2024 combined ratio hit 123% (highest in 14 years) as insurers pay out $1.23 for every $1 collected, driven by higher medical costs, cumulative trauma claims and claim adjustment expenses, prompting an 11.2% rate increase proposal for September 2025.
How Much Workers' Comp Insurance Do I Need in California?
California law requires workers' compensation insurance for all employers, even if you have only one employee. California mandates specific benefits: full medical coverage with no dollar limits, temporary disability benefits of two-thirds of average weekly wages and permanent disability benefits based on injury severity. Your policy must cover all eligible employees, with coverage amounts based on your payroll and industry classification.
Failing to carry required workers' comp coverage is a serious violation in California. Violations can result in criminal charges, $10,000 in fines and possible imprisonment.
California Workers' Comp Insurance Exemptions
While you're often required to have coverage in California, some business categories are exempt from workers' comp requirements:
- Sole proprietors: You can't be an employee of your own company under California law, so if you're self-employed you don't need workers' comp coverage for yourself. However, roofers must still get coverage even when working alone.
- Independent contractors: Your contractors must pass California's three-part ABC test (proving they work independently) to avoid needing contractor workers' comp coverage.
- Corporate officers (10% or more ownership): If you own 10% or more of your corporation, you can opt out of workers' compensation requirements by filing a written waiver and maintaining health insurance.
- General partners/LLC managing members: As a managing member, you can waive workers' comp coverage by filing written documentation with your insurance carrier.
- Family members: California law excludes workers you employ who are your parent, spouse or child from workers' comp requirements.
- Domestic workers (limited hours): Workers you employ for fewer than 52 hours or who earn under $100 within 90 days qualify for a workers' comp insurance exemption.
- Volunteers: Unpaid volunteers performing services for your nonprofit organization don't need workers' comp.
- Professional corporation owners: If you're a licensed professional, you can waive workers' compensation by maintaining health insurance and filing proper documentation.
FEDERAL WORKERS' COMP PROGRAMS OVERRIDE STATE REQUIREMENTS
Workers covered by federal programs are exempt from state workers' compensation requirements nationwide. This includes federal government employees under FECA, railroad employees under FELA and maritime workers under the Longshore and Harbor Workers' Compensation Act. Independent contractors and unpaid volunteers are also excluded nationwide, as they aren't classified as employees under state workers' compensation laws.
How to Get the Best Workers' Comp Insurance in California
Here's how to get workers' comp insurance with the right provider at the best price.
- 1Determine if you need workers' comp coverage in California
Check whether workers' comp exemptions apply to your business structure or employee types. For example, a sole proprietor web designer wouldn't need coverage, but adding one employee changes everything. California has stricter employee definitions than many states, and some workers you consider 1099 contractors may legally be classified as employees requiring coverage.
- 2Gather your business information
You'll need employee count, annual payroll and WCIRB classification codes (not NCCI codes) for accurate quotes. California uses its own system with around 700 industry classifications that differ from what other states use.
Don't guess on these numbers. Getting your payroll or classification code wrong means you could get hit with surprise audit bills later, or worse, find out you're not covered when you actually need to file a claim. Construction businesses need to pay extra attention here since California has dual wage thresholds that don't exist elsewhere.
- 3Request workers' comp quotes from multiple carriers
Get quotes from at least three different insurers so you can compare apples to apples. Make sure one of those quotes comes from California's State Compensation Insurance Fund (SCIF).
SCIF acts as the state's backup carrier, and private insurers often watch what SCIF does with pricing. Back in 2022, SCIF dropped rates by 9.5%, and a bunch of private companies matched those cuts. But here's the thing: SCIF usually isn't your cheapest bet. That's why you need to put those quotes side by side and see who's really offering the best deal.
- 4Research providers with industry experience
Once you have quotes, focus on insurers who understand your business risks and classification codes beyond simply offering affordable business insurance rates. For example, construction companies should prioritize carriers specializing in high-risk industries and understand Cal/OSHA (California's Occupational Safety and Health Administration) requirements over general business insurers.
- 5Evaluate your top provider options
Look into each insurer's track record to determine which offers the best business insurance for your needs:
- Check claim processing times, customer service ratings and complaint history with California's Department of Insurance.
- Verify if the insurer offers Medical Provider Networks (MPNs), which have been available in California since 2005 and can reduce medical costs.
- Ask about the insurer's experience with California's Independent Medical Review (IMR) and Independent Bill Review (IBR) processes established under SB 863.
- Choose carriers offering valuable extras like return-to-work programs, safety consultations and experience with California's cumulative trauma claims (which now represent 37.5% of all litigated claims statewide).
- 6Review and purchase your workers' compensation policy
Read policy terms carefully, focusing on coverage limits, exclusions and renewal conditions specific to California regulations. Choose payment options that work for your cash flow, such as pay-as-you-go workers' comp structures for seasonal businesses, as California has some of the highest workers' comp costs in the nation (ranked third most expensive). Ask about labor-management carve-out agreements if you're a unionized employer, as California has permitted these cost-saving alternative dispute resolution arrangements since 1993.
- 7Reassess before annual renewal
Before your policy renews, look at how your business has changed. Check your employee count, review any claims you filed and see where your experience modification rate (EMR calculated by WCIRB) stands.
A lot can happen in a year. Maybe you hired three more people or moved into a bigger space. Let your insurer know about these changes so you're not underinsured or overpaying.
California insurers paid out $1.23 for every dollar they collected in 2024, hitting a 123% combined ratio — the worst it's been in 14 years. That triggered an 11.2% rate increase proposal for September 2025. Your rates will probably go up even if you haven't filed a single claim.
Best California Workers' Compensation Insurance: Bottom Line
California offers plenty of good workers' comp insurers. NEXT, The Hartford and Simply Business top our rankings, though the right pick depends on your specific industry, team size and budget. Get quotes first, then look at how each insurer handles businesses like yours.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
He writes about economics and insurance, breaking down complex topics so people know what they're buying.
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