Best Workers' Compensation Insurance in California (2025)

MoneyGeek assessed workers' compensation insurance providers in California, considering factors such as affordability, customer satisfaction, financial stability and online quoting. The Hartford ranked as the top option in the state.

In California, every business, irrespective of employee count, must have workers' compensation insurance to protect against financial and legal liabilities. This insurance covers medical costs, lost wages and possible legal actions stemming from work-related injuries or illnesses.

The Hartford is California’s best worker’s compensation insurance provider, according to MoneyGeek’s rankings. Policyholders can get quality service from this provider for around $91 a month. Based on MoneyGeek’s analysis, the insurer scores 98 out of 100, signifying good overall performance.

The Hartford stands out as the most affordable workers’ comp insurance company in California, offering an average monthly premium of around $91. This rate is based on businesses with 20 employees and a substantial $1,250,000 in annual payroll costs. Keep in mind that employee count and payroll have a considerable impact on insurance costs.

We assessed companies based on their average monthly cost to identify the most affordable insurer available. Our rates may not directly correspond to your actual ones, and the most cost-effective company for you could differ depending on other factors.

The table below presents the annual and monthly costs for insuring a business with approximately 20 employees for all the companies we have examined in California.

In California, The Hartford stands out as the leading option for businesses with five employees, offering a competitive monthly premium of approximately $45. This premium is calculated based on an annual payroll amount of $312,500. Generally, a business with one to nine employees is categorized as a micro business. While employee count influences workers' compensation insurance costs, payroll tends to have a more substantial effect on premiums.

The Hartford can also be an ideal option for enterprises with 100 employees, providing an attractive monthly premium of $472. This rate is based on an annual payroll sum of $6,250,000. Although the employee count factors into workers' compensation insurance costs, payroll tends to have a greater impact on premiums.

The average monthly cost of workers' compensation insurance in California for a business with 20 employees is $167. This figure is just one dollar below the national average of $168. As a business owner, it's essential to understand how these costs can impact your company and the importance of choosing the right coverage.

This figure corresponds to a plan with a $1 million total policy limit, $1 million per accident limit and $1 million per employee limit. The total policy limit refers to the maximum amount the insurer will pay for all claims during the policy period. The per accident limit is the maximum amount the insurer would cover for a single incident, while the per employee limit represents the maximum coverage for each individual employee.

The table below provides you with a clear picture of the average costs for businesses with five, 20 and 100 employees. This can help you choose the best coverage for your business.

The cost of workers' compensation insurance varies for each business, depending on several factors that influence coverage costs.

Workers' comp insurance in California provides coverage for expenses arising from employees sustaining injuries or illnesses in the course of their employment with your company. All businesses in the state are required to carry workers’ compensation insurance. Sole proprietors, partners and corporate officers who fully own a corporation can choose to be excluded from this insurance.

Workers' compensation insurance provides vital benefits to employees experiencing work-related injuries or illnesses. This coverage usually encompasses medical care, disability benefits, lost wages and more for impacted workers. It helps injured employees obtain essential medical treatment, wage replacement benefits and vocational rehabilitation, among other advantages.

The employer, as the policyholder, is responsible for obtaining workers' compensation insurance. This not only safeguards their employees but also defends the business against potential legal claims associated with workplace injuries or illnesses. It is crucial in fostering a secure and safe work environment for both employers and employees.

The Division of Workers' Compensation (DWC) oversees the management of workers' compensation claims and offers administrative and judicial services to help resolve disputes arising from claims for workers' compensation benefits.

Employees who want to receive workers’ compensation benefits need to file a form to send to their employer. The employer will then fill out their portion of the form and send it to their insurance company.

DWC's mission revolves around reducing the negative effects of work-related injuries on California employees and employers.

We provide some information that answers commonly asked questions about workers’ comp insurance in California.