California Workers' Compensation Insurance
Everything you need to know about workers' comp in California: when it's required, who's exempt, average rates, and how to get coverage in 60 seconds.
When is workers' comp required in California?
Required for any employer with at least one employee — including roofing contractors with no employees other than the owner.
Sole proprietor & partnership rules
Sole proprietors with no employees are exempt unless in roofing (5552) — roofers must have coverage even with no employees.
Owner / corporate officer exclusion
Corporate officers and LLC members may exclude themselves with Form 2570.
Form: DWC Form 2570
California-specific notes
California uses its own classification system (WCIRB) with ~500 unique codes. Roofers (5552) are required to have coverage even with no employees per AB 685.
How much does workers' comp cost in California?
The average workers' comp rate in California is approximately $1.45 per $100 of payroll. Your actual rate depends on your industry class code, claims history, payroll size, and carrier.
Example: a California business with $100,000 in payroll at the state average rate would pay approximately $1,450 per year. A clerical-only business (class code 8810) would pay much less; a roofing contractor (5551) would pay much more.
Want an exact rate for your business?
Class code rates vary widely. Get a free quote and we'll look up your exact California rate for your industry.
Get My California Quote →California workers' comp by industry
Industry-specific rates, common class codes, and requirements for California businesses:
Frequently asked — California workers' comp
Do I need workers' comp if I have only one employee in California?
Yes — California requires workers' comp coverage starting with one employee.
Are 1099 contractors covered under my California workers' comp policy?
Generally no — true independent contractors are not employees and not covered. However, California (like most states) applies an "ABC test" or similar to determine if a 1099 worker is actually a misclassified employee. If they're misclassified, you may owe back premium and penalties. Many general contractors require their 1099 subs to carry their own workers' comp.
Can I get pay-as-you-go workers' comp in California?
Yes — most major carriers offer pay-as-you-go workers' comp in California, with premium based on actual payroll each pay period instead of a large upfront deposit.
What if I'm being audited by my California workers' comp carrier?
Workers' comp audits often result in additional premium owed because of misclassified employees, missed payroll, or wrong class codes. We offer free audit reviews and can dispute incorrect classifications with your carrier. In many cases we save clients thousands.