It is one of the most common questions we get from new business owners: “I only have one employee. Do I really need workers’ comp?” In California the answer is yes. The law does not have a small-business exemption, and the penalties for going without are serious.
We are an insurance agency, not attorneys, so this covers the insurance side: who has to carry it, what it pays for and what it costs.
The short version:
- One employee, full-time or part-time, is enough to require workers’ comp.
- Some licensed contractors must carry it even with no employees.
- Operating without it is a crime, and the state can shut the business down.
- Workers’ comp from MIS Insurance starts as low as $83 a month. Prices vary.
The rule: one employee is enough
California Labor Code section 3700 requires every employer to provide workers’ compensation benefits. The state’s Department of Industrial Relations puts it plainly: if a business employs one or more employees, it must meet the requirement.
That includes part-time and seasonal workers. Be careful with the word “contractor,” too. Calling someone an independent contractor does not make them one. California uses a strict test to decide who is really an employee, and if the state decides your contractor was an employee, you needed coverage all along.
Contractors: some need it with no employees
The Contractors State License Board requires workers’ comp, with or without employees, for these license classes:
- C-8 Concrete
- C-20 Heating, ventilating and air conditioning
- C-22 Asbestos abatement
- C-39 Roofing
- D-49 Tree service
California is set to require it of every licensed contractor starting January 1, 2028. That date was already moved once, from 2026, so check it again as it gets closer.
What workers’ comp covers
- Medical care for a work injury or illness.
- Part of the employee’s lost wages while they recover.
- Disability benefits if they cannot return to full work.
- Death benefits for the family.
It also protects you. In most cases an employee who receives workers’ comp benefits cannot sue the employer over the injury.
What happens if you go without it
| Consequence | What the state says |
|---|---|
| Criminal charge | Failing to have coverage is a misdemeanor |
| Fine or jail | A fine of at least $10,000, up to one year in county jail, or both |
| Stop order | The state can order you to stop using employee labor until you are covered |
| State penalties | Up to $100,000 against an illegally uninsured employer |
| The injury itself | You pay the injured worker’s bills, and the worker can sue you |
How much does workers’ comp cost?
Workers’ comp from MIS Insurance starts as low as $83 a month. Prices vary. Yours is based on:
- Your payroll. The more you pay in wages, the more the policy costs.
- The kind of work. Roofing costs more per dollar of payroll than office work.
- Your claims history.
What we need to quote it
- The name of the company and its address
- Federal tax ID, if you have one
- Your line of business and a short description of what you do
- The number of full-time and part-time employees
- Total payroll, not counting officers
- Whether you have prior insurance or this is a new venture
- The date you want coverage to start
You can send all of that through the form on our workers’ compensation page.
Common questions
Do part-time employees count?
Yes. Part-time, seasonal and temporary employees all count.
I’m self-employed with no employees. Do I need it?
Usually not, unless you are a licensed contractor in one of the trades listed above. Some clients will still ask for it before they hire you.
Does it cover me, the owner?
It depends on how your business is set up. Call us and we will explain your options.
What else does my business need?
Workers’ comp only covers your employees. For injuries to customers and damage to their property you need general liability, and for work vehicles you need commercial auto.
Need a workers’ comp quote?
Start at our workers’ compensation insurance page, or call 800-726-0640, Monday through Friday, 8 am to 6 pm Pacific. MIS Insurance Services is an independent agency rated 4.9 stars across more than 3,100 Google reviews.
Coverage we can help with
- General liability insurance, as low as $59 a month
- Workers’ compensation insurance, as low as $83 a month
- Commercial auto insurance, as low as $79 a month
- Homeowners insurance, as low as $69 a month, and as low as $175 a month for brush-area homes and homes with claims
- Condo insurance, as low as $79 a month
- Renters insurance, as low as $11 a month
- Landlord and investment property insurance, as low as $75 a month
- Short-term rental insurance, as low as $85 a month
- All property insurance
Prices vary by business, property, location and coverage.
This article is general information, not legal advice. What a policy covers depends on the policy you buy, and California’s rules change. Confirm the details for your own situation with your agent. Last reviewed October 2026.