California Workers' Comp Insurance Cost

If you want an instant estimate, use MoneyGeek's California workers' comp insurance calculator. It allows you to get a per-employee cost range based on your industry and number of employees, without needing your personal information or bombarding you with spam calls. Once you have a good idea of your premium, you can click Get Quotes to be matched with an insurer and start getting workers' comp pricing on your match's website.

At the state average, workers' comp insurance costs in California are around $256/mo or $3,226/yr per employee, making it the 2nd most expensive state for this coverage, just below New York. Though averages are deceiving, unless you're in a higher-risk industry like contracting or transportation services, you'll more than likely pay less than this. Of the industry areas I analyzed, 18 of the 25 had averages below the state average, and 12 pay an average below $150/mo per employee. Especially if you're in a white-collar area like consulting or finance, rates are often below $50/mo due to the low risk of on-the-job injury.

California has some of the nation's highest workers' compensation insurance costs, partly because of its higher claims-handling expenses, frequent claims involving injuries that develop over time and regional differences in workplace injury rates. The sections below help contextualize these main reasons why operating in the state makes workers' comp insurance expensive.

Getting affordable workers' comp in California can be a challenge, but these methods below can help you secure the lowest rates possible:

• Compare insurer rates: Use your independent research or California's rate comparison tool to identify insurers offering competitive base rates for your industry.
• Check employee classifications: Ensure your employees are classified under the most accurate codes that represent their risk properly to not overpay. For example, ensuring qualifying clerical and remote employees are classified under California's lower-risk codes 8810 or 8871 instead of higher-risk occupational codes can help you get cheaper rates.
• Improve your X-Mod: If your business qualifies for California's experience rating system, reduce workplace injuries and claims costs to improve your rating with safety procedures and documentation to lower premiums over time.
• Explore group and dividend programs: Ask insurers about industry association group plans or dividend programs that may provide savings based on eligibility and claims performance.
• Check California's State Fund: Request a quote from State Fund if private insurers charge high premiums or decline coverage, although lower rates aren't guaranteed.

Average monthly workers' comp insurance costs in California were aggregated across 400+ industries for companies with 1 to 4 employees. Grouped rates at the general industry level are based on these sub-industry professions, aggregated into 25 core groupings. All data presented is based on quoted pricing from eight California insurers, assuming the state-level base profile and isolating industry as a factor to help you compare pricing.