NEXT came out on top in our research for workers' comp insurance in California, with exceptional customer service and many coverage choices. Consider The Hartford and Simply Business as solid alternatives for California small business owners.
Workers' Comp Insurance in California
Updated: August 6, 2025
Advertising & Editorial Disclosure
Key Takeaways
NEXT, The Hartford and Simply Business top our analysis for the best workers' comp insurance in California.
Your industry risk level, employee count, claims history and budget help you pick the right workers' comp in California.
Get quotes, research industry experience, evaluate track records and compare coverage options to find the best workers' comp insurance in California for your business.
Best Workers' Comp Insurance Companies in California
| NEXT | 4.59 | 1 |
| The Hartford | 4.58 | 2 |
| Simply Business | 4.51 | 3 |
| Coverdash | 4.44 | 4 |
| biBerk | 4.42 | 5 |
| Nationwide | 4.41 | 6 |
| Progressive Commercial | 4.38 | 7 |
| Hiscox | 4.36 | 8 |
| Thimble | 4.35 | 9 |
| Chubb | 4.25 | 10 |
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.
LEARN MORE ABOUT BUSINESS INSURANCE IN CALIFORNIA
California law requires workers' comp insurance for all employers, but you'll likely need additional financial protection for your business. Learn more about workers' comp coverage and explore other types of coverage with these guides:
Best California Workers’ Comp Insurance Reviews
So what makes NEXT and Simply Business stand out?
NEXT
Best for Customer Service
MoneyGeek Rating
4.6/ of 5
4.4/5Affordability
4.7/5Customer Experience
4.8/5Coverage Options
Average Monthly Premium
$76We analyzed thousands of workers' compensation quotes from insurers operating in California across 79 industriesOur Survey: Claims Process
3.9/5Our Survey: Recommend to Others
4.8/5
Simply Business
Best for Coverage Availability
MoneyGeek Rating
4.5/ of 5
4.5/5Affordability
4.2/5Customer Experience
4.9/5Coverage Options
Average Monthly Premium
$80We analyzed thousands of workers' compensation quotes from insurers operating in California across 79 industriesOur Survey: Claims Process
3.7/5Our Survey: Recommended to Others
4.2/5
Cheapest Workers' Comp Insurance Companies in California
NEXT offers California's most affordable workers' comp insurance at $76 monthly ($915 annually). The Hartford and Thimble are solid alternatives, with monthly rates below $80. The table below shows costs from all companies we analyzed:
| NEXT | $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 are for small businesses with two employees across 79 major industries or business types and focus solely on workers’ comp policies. Your actual premium depends on where your business is located, what industry you're in, how many employees you have, and other factors insurers consider.
Average Cost of Workers’ Comp Insurance in California
We found that California workers' comp insurance averages $82 monthly ($984 annually), about $8 more than the national average of $74. Your actual costs vary based on your industry's risk level, employee count, annual payroll and claims history.
Average Cost of Workers' Comp in California by Industry
Our data shows California workers' comp premiums range from $7 monthly for speech therapists to $939 for roofers. That's because some jobs are way riskier than others across industries, affecting insurance costs.
| 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 |
How Much Workers' Comp Insurance Do I Need in California?
California law requires workers' compensation insurance for all employers, even if they have only one employee. It provides coverage when employees get hurt or sick because of work. Otherwise, you'll have to pay for their medical costs out of pocket.
Not having workers' comp in California is a serious violation. You're looking at potential criminal charges, $10,000 in fines and possible imprisonment. However, some categories are exempt from these requirements:
Sole proprietors (except roofers)
Business owners can't be employees of their own company under California law.
Independent contractors
Workers must meet the ABC test requirements (California's three-part test determining if workers are employees or independent contractors) and operate independently from hiring companies.
Corporate officers (10% or more ownership)
Officers with significant ownership 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 law excludes workers employed by their parent, spouse or child.
Domestic workers (limited hours)
Workers employed for fewer than 52 hours or earning under $100 within 90 days qualify for exemption.
Volunteers
Coverage requirements exclude unpaid volunteers performing services for nonprofit organizations.
Professional corporation owners
Licensed professionals can waive coverage by maintaining health insurance and filing proper documentation.
ROOFERS CAN'T SKIP WORKERS' COMP IN CALIFORNIA
Most sole proprietors don't need workers' comp, but roofers are different. California requires all C-39 Roofing contractors (California contractor classification), even solo operators, to get coverage. This requirement comes from the California Contractors State License Board due to the high-risk nature of roofing work.
How to Get the Best Workers' Comp Insurance in California
California workers' comp seems complicated, but you can get coverage that protects your employees while keeping business insurance costs manageable. Start with the basics, like comparing rates and checking each company's claims process before you buy.
- 1
Determine if you need coverage
Check whether 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.
- 2
Gather your business information
Collect employee count, annual payroll and job classifications for accurate quotes. All these directly impact your premium calculations, so any inaccuracies can lead to surprise audit bills or coverage gaps when you file a claim.
- 3
Request quotes from multiple carriers
For an accurate comparison, get quotes from at least three different insurers. California small businesses can see considerable rate differences. Our study shows that The Hartford might quote $77 monthly while Chubb charges $94 monthly for similar coverage.
- 4
Research providers with industry experience
Once you have quotes, focus on insurers who understand your business risks and classification codes. For example, construction companies should prioritize carriers specializing in high-risk industries and understand Cal/OSHA (California's Occupational Safety and Health Administration) requirements rather than general business insurers.
- 5
Evaluate your top provider options
Look into each insurer's track record. Check claim processing times, customer service ratings and complaint history with California's Department of Insurance. Look for carriers offering valuable extras like return-to-work programs and safety consultations.
- 6
Review and purchase your policy
Read policy terms carefully, focusing on coverage limits, exclusions and renewal conditions. Choose payment options that work for your cash flow, such as pay-as-you-go structures for seasonal businesses.
- 7
Reassess before annual renewal
Review your coverage needs, employee count changes and claims history before renewal. Your business can grow so much in one year, so update your insurer about these changes to ensure you're properly covered and paying accurate premiums.
California Workers’ Comp: 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.
California Workers' Comp Insurance: FAQ
California workers' comp insurance requirements and costs raise many questions for business owners. We've answered the most frequently asked questions below:
Is workers' comp insurance required for all California businesses?
California requires workers' comp for all employers, even with one 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?
NEXT offers the cheapest coverage at $76 monthly ($915 annually), but costs depend on your industry risk, employee count, payroll and claims history.
What does workers' comp insurance cover in California?
California workers' comp covers unlimited medical expenses and lost wages when employees get hurt or sick from work. You'll also get employers' liability protection against lawsuits. Policies cover employees but not independent contractors, who need separate coverage.
Which workers' comp insurance company is best in California?
NEXT leads our analysis with a 4.59 out of 5 score. It excels in customer service and offers extensive coverage options. The Hartford ranks second (4.58 score) and tops in financial stability, while Simply Business (4.51 score) covers 300+ business types. Choose based on whether you want top service, financial strength or the broadest coverage.
What happens if I don't have workers' comp insurance in California?
Operating without required workers' comp results in criminal charges, $10,000 fines and possible jail time. You'll also pay for employee medical costs and lost wages out of pocket. California's Department of Industrial Relations enforces requirements and can shut down non-compliant businesses.
Do sole proprietors need workers' comp insurance in California?
Most sole proprietors don't need coverage since owners can't be employees under California law. However, all C-39 Roofing contractors, even solo operators, must get coverage per California Contractors State License Board requirements. High-risk roofing work eliminates the usual exemption.
How do I choose the right workers' comp insurance company in California?
Get quotes from three insurers. Our study shows that average rates range from $76 to $94 monthly for similar coverage. Choose providers experienced in your industry. Construction companies should prioritize carriers specializing in high-risk work. Check claims processing speed, customer ratings and complaint records with California's Department of Insurance.
How We Scored the Best Workers' Comp Insurance Companies in California
California small businesses face serious costs when employees get injured on the job. Workplace injuries, from construction accidents to office slip-and-falls, create substantial costs for unprepared business owners. We analyzed thousands of workers' compensation quotes from insurers operating in California to find which deliver reliable coverage without breaking small business budgets.
How We Analyzed California Workers' Comp Insurers
- Affordability (50%): Cost drives every small business insurance decision in California's expensive market. We compared monthly premiums across all companies, since even comprehensive policies won't help if you can't afford them.
- Customer experience (30%): When your employee gets hurt, you'll need an insurer that handles claims quickly and treats injured workers fairly. We used J.D. Power ratings, California Department of Insurance complaint data and independent reviews.
- Coverage options (15%): A San Diego restaurant faces different workers' comp risks than a Sacramento tech startup. We evaluated each company's policy flexibility, add-on options and coverage limitations for specific California industries and regulatory requirements.
- Financial strength (5%): Premium savings don't matter if your insurer struggles financially. We checked AM Best ratings to ensure recommended carriers can deliver on their promises.
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
- AM Best. "AM Best Places Credit Ratings of Next Insurance US Company Under Review With Positive Implications." Accessed August 6, 2025.
- California Code. "Labor Code Section 3352." Accessed August 6, 2025.
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- California Department of Industrial Relations. "Independent Contractors." Accessed August 6, 2025.
- California Division of Workers' Compensation. "DWC Employer Information." Accessed August 6, 2025.
- NEXT. "Ergo Gains Access to the u.s. Market With the Full Acquisition of Next." Accessed August 6, 2025.
- PR Newswire. "Simply Business Partners With Employers® to Expand Workers' Compensation Offering for Small Business Customers." Accessed August 6, 2025.
- PR Newswire. "Simply Business Partners With SolePro to Offer Unique Owner-Excluded Workers' Compensation to Small Business Customers." Accessed August 6, 2025.
- PR Newswire. "Simply Business Teams Up With Cerity® to Offer Workers' Compensation Coverage to Small Business Customers." Accessed August 6, 2025.
- Trustpilot. "Next Insurance Reviews." Accessed August 6, 2025.
- Trustpilot. "Simply Business US Reviews." Accessed August 6, 2025.
- Travelers Insurance. "Financial Strength." Accessed August 6, 2025.