California workers' comp rates depend on your industry classification, annual payroll and experience modification rate. Find answers to common coverage questions below.
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: November 18, 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 comes 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
California has dozens of workers' comp insurers, but these companies rank highest for their coverage options, affordability and customer service.
NEXT
Best Workers' Comp Insurance in California
MoneyGeek Rating
4.6/ 5
4.4/5Affordability
4.7/5Customer Experience
4.8/5Coverage Points
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 Points
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 significant 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 jumped from 29.4% to 37.5% of litigated claims between 2010 and 2022, nearly half of all claims in the Los Angeles Basin. Each claim averages $31,000, with 57% ending up in litigation. Cumulative trauma claims cost 53% more than specific injury claims and are harder to defend, driving up premiums for all California businesses.
Medical Provider Networks (MPN)
California's MPN program launched in 2005, letting employers create Division of Workers' Compensation (DWC)-approved provider networks. These networks require second or third opinion processes when disputes arise. MPNs cut costs by sending injured workers to occupational medicine specialists who focus on workplace injuries, speeding up recovery and return to work while controlling medical expenses.
California State Fund (SCIF)
California's nonprofit State Compensation Insurance Fund (SCIF) serves as carrier of last resort and influences market pricing. SCIF's 2022 9.5% rate reduction prompted private insurers to follow suit to remain competitive. SCIF stabilizes the market and 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 coverage is often required 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 self-employed workers don't need workers' comp coverage for themselves. Roofers must still get coverage even when working alone.
- Independent contractors: Contractors must pass California's three-part ABC test to avoid needing contractor workers' comp coverage. The test proves they work independently without your control or supervision.
- Corporate officers (10% or more ownership): Corporate officers owning 10% or more can opt out by filing a written waiver and maintaining health insurance.
- General partners/LLC managing members: Managing members can waive coverage by filing written documentation with their insurance carrier.
- Family members: California excludes your parent, spouse or child from workers' comp requirements when you employ them.
- Domestic workers (limited hours): Workers employed for fewer than 52 hours or earning under $100 within 90 days qualify for exemption.
- Volunteers: Unpaid volunteers at nonprofit organizations don't need coverage.
- Professional corporation owners: Licensed professionals 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
Shopping for workers' comp in California means more than finding the lowest rate. You need coverage from an insurer who understands your industry and handles claims efficiently.
- 1Determine if you need workers' comp coverage
Check whether workers' comp exemptions apply to your business structure or employee types. A sole proprietor web designer doesn't need coverage, but hiring one employee triggers the requirement. California defines employees more strictly than many states, and workers you classify as 1099 contractors may legally qualify 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.
Accurate numbers matter. Wrong payroll or classification codes mean surprise audit bills or denied claims. Construction businesses face dual wage thresholds unique to California.
- 3Request workers' comp quotes from multiple carriers
Get quotes from at least three insurers to compare rates and coverage. Include California's State Compensation Insurance Fund (SCIF) in your quotes.
SCIF acts as the state's backup carrier and influences market pricing. SCIF dropped rates 9.5% in 2022, prompting private insurers to match those cuts. SCIF typically costs more than private carriers, so compare quotes carefully.
- 4Research providers with industry experience
Focus on insurers who understand your business risks and classification codes beyond low business insurance rates. Construction companies should prioritize carriers specializing in high-risk industries with Cal/OSHA (California's Occupational Safety and Health Administration) experience over general business insurers.
- 5Evaluate your top provider options
Review each insurer's track record to determine who offers the best business insurance:
- 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), available in California since 2005 to reduce medical costs.
- Ask about experience with California's Independent Medical Review (IMR) and Independent Bill Review (IBR) processes established under SB 863.
- Choose carriers offering return-to-work programs, safety consultations and experience with California's cumulative trauma claims (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 matching your cash flow, such as pay-as-you-go workers' comp structures for seasonal businesses. California ranks third most expensive for workers' comp costs nationwide. Ask about labor-management carve-out agreements if you're a unionized employer. California has permitted these cost-saving alternative dispute resolution arrangements since 1993.
- 7Reassess before annual renewal
Before your policy renews, review how your business has changed. Check employee count, filed claims and your experience modification rate (EMR calculated by WCIRB).
Business changes happen fast. Inform your insurer about new hires or expanded operations to avoid being underinsured or overpaying.
California insurers paid out $1.23 for every dollar collected in 2024, hitting a 123% combined ratio — the worst in 14 years. This triggered an 11.2% rate increase proposal for September 2025. Your rates will likely rise even without filing claims.
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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