The Hartford is California’s best worker’s compensation insurance provider, scoring nearly perfect with 99 out of 100. The company offers a strong combination of reliable customer service, very low workers' comp rates and an extensive coverage selection. biBerk and Nationwide are good runners-up to consider.
Cheapest Workers' Comp Insurance in California
Updated: April 17, 2025
Advertising & Editorial Disclosure
Key Takeaways
The Hartford, biBerk, Nationwide, Pie and Thimble are the best cheap workers' compensation insurance providers in California.
For most small businesses in California, workers' compensation coverage costs around $960 per year or $84 per month.
Workers' comp insurance is required in California for all companies with employees. It covers expenses when employees sustain injuries or illnesses during business activities.
Best Cheap Workers’ Comp Insurance Companies in California
| The Hartford | 99 | $203 |
| biBERK | 91 | $316 |
| Nationwide | 91 | $307 |
| Pie | 86 | $324 |
| Thimble | 83 | $450 |
*Rates and scores are for software development businesses with small (five employees), medium (20 employees) and large (100 employees) operations, aggregated for an overall best recommendation.
Best Cheap California Workers' Comp Insurance by Business Size
Regardless of your business's size, The Hartford remains the best workers' compensation insurance option in California at the most affordable rates. Below, you can review the company's rates for small, medium and larger small businesses.
| The Hartford | Businesses with five or less employees | $48 |
| The Hartford | Medium-size small businesses | $95 |
| The Hartford | Larger small businesses | $496 |
The Hartford: Best Overall
pros
Most affordable rates in California
Great customer service ratings overall
Fast quotes and buying process
cons
Lower-than-average J.D. Power ratings
COMPANY HIGHLIGHTS
The Hartford earns a 4.8 out of 5 rating from more than 2,000 customers for workers' comp services, the highest score among providers we studied. The company ranks first for affordability regardless of business size. Ethisphere has recognized The Hartford 16 times for ethical business practices.
How Much Is Workers' Comp Insurance in California?
Workers' comp rates for California businesses range from $960 to $8,753 per year. This range applies only to software development companies. Your actual rates will vary based on:
- Number of employees
- Industry risk level
- Specific work performed by employees
- Claims history
| Larger small businesses | $749 | $8,754 |
| Businesses with five or less employees | $84 | $960 |
| Medium-size small businesses | $175 | $2,026 |
Factors That Impact Workers’ Compensation Costs in California
The cost of workers' compensation insurance varies for each business based on several factors that influence rates:
Payroll costs
Businesses typically pay workers' compensation rates based on each $100 of payroll. A business with higher payroll costs pays a higher premium than one with lower payroll costs. California's average premium index rate for 2022 is $2.26 per $100 of payroll, ranking third highest nationwide.
Number of employees
Companies with a large number of employees face a higher risk of employee injury, which can increase insurance premiums.
Employee class code
A class code identifies the type of work employees do. This code sets the rate charged for every $100 of payroll. High-risk industries like construction, mining and manufacturing typically have higher rates than lower-risk fields such as consulting, accounting and software development.
Previous claims
A history of workers' compensation claims can increase your premium. According to the U.S. Bureau of Labor Statistics, California reported 363,900 recordable nonfatal cases in private industry in 2023. Nationally, there were over 2.6 million recordable nonfatal cases in private industry.
California Workers' Comp Insurance: Buyer's Guide
Finding the right business insurance can be challenging. We've broken down how to get the best workers' comp coverage, who needs it and what this type of policy covers to guide you.
How to Get the Best Workers' Comp Insurance in California
Here are the steps to help your organization get the best workers' compensation policy possible:
- 1
Learn about required coverages and options
Research your state's regulations first, as requirements and options vary widely. The coverage you need depends on your industry, organization size and claims history. Talk to a business insurance agent about what's right for your company before buying to avoid getting too much or too little workers' comp insurance.
- 2
Research costs and providers
Research average costs and providers for your specific business to determine which companies to get quotes from. Also, consider state-provided options and whether self-insurance is possible in your state.
- 3
Consult similar businesses
Talk to other businesses in your community, especially those similar to yours. Ask about their experiences, needs and coverage choices to help inform your decision more personally.
- 4
Compare multiple providers through different means
Get multiple quotes and compare providers on equal terms to find the best deal. Prices vary depending on how you get quotes — online comparison sites versus speaking with an agent. Use different methods and contact various companies to gain the most balanced view of what's best for your business.
Do You Need Workers’ Compensation Insurance in California?
All California businesses must carry workers' compensation insurance. Sole proprietors, partners and corporate officers who fully own a corporation may choose to be excluded.
WORKERS’ COMP PENALTIES IN CALIFORNIA
In California, employers who don't provide required workers' compensation insurance or follow workers' comp laws may face:
- A fine of at least $10,000, up to one year in county jail, or both
- Penalties up to $100,000 for illegally uninsured employers
What Does Workers’ Compensation Insurance Cover in California?
Workers' compensation insurance provides essential benefits to employees with work-related injuries or illnesses. This coverage typically includes medical care, disability benefits and lost wages for affected workers, paying 66% of weekly wages under California law. It protects employees while shielding businesses from potential legal claims related to workplace injuries or illnesses.
Best Workers' Compensation Insurance California: Bottom Line
The Hartford, biBerk and Nationwide offer the best and cheapest workers' compensation insurance in California. While we recommend these companies, compare rates yourself and consult similar businesses in your industry to find the best deal.
Workers' Comp Insurance California: FAQ
Below are answers to frequently asked questions about California workers' comp insurance from MoneyGeek experts:
Which company has the best workers’ compensation insurance in California?
The Hartford offers California's best workers' compensation insurance with competitive pricing (averaging about $95 per month) and a low complaint index. However, your best insurance option depends on your industry, workforce size and state requirements.
Which company has the cheapest workers’ compensation insurance in California?
The Hartford is California's most affordable workers' comp insurance provider and is the best choice for businesses of all sizes. Monthly rates start at $48.
Is workers’ compensation insurance required for businesses in California?
In California, workers' comp insurance is mandatory for all businesses, though sole proprietors, partners and corporate officers with full ownership may opt out.
How much does workers’ compensation insurance cost in California?
California businesses with 20 employees pay an average monthly workers' compensation insurance cost of $175, slightly below the national average of $178.
How We Rated Workers' Comp Insurance Companies in California
MoneyGeek calculated workers' compensation insurance rates using a software development business with five, 20 and 100 employees to represent various organization sizes.
Our scoring methodology included:
- Affordability (60%): Overall cost compared to other providers and different business profiles
- Customer experience (30%): Ratings from actual customers, J.D. Power studies, A.M. Best financial stability ratings and our team's experience with quote processes
- Coverage (10%): Additional options beyond standard offerings and breadth of industries served
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!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.
sources
- Ethisphere. "The 2025 World’s Most Ethical Companies® Honoree List." Accessed April 14, 2025.
- State Compensation Insurance Fund. "California Workers' Compensation." Accessed April 14, 2025.
- The Hartford. "Workers' Compensation Insurance Reviews." Accessed April 14, 2025.
- U.S. Bureau of Labor Statistics. "Employer-Reported Workplace Injuries and Illnesses in California — 2023." Accessed April 14, 2025.
- U.S. Bureau of Labor Statistics. "Employer-Reported Workplace Injuries and Illnesses – 2023." Accessed April 14, 2025.