If my California business has one employee, should I ask about workers’ compensation?

Yes. California employers need workers’ compensation insurance even with one employee. Check each other work state separately; this California rule does not establish requirements elsewhere.

List each employee’s work state, duties, and payroll. If an out-of-state employer has employees who regularly work in California or entered an employment contract there, ask whether California coverage applies; confirm states and job classifications in the quote.6

Read the Healthcare Services Insurance Buying Guide

Spot, a product of Tools for Enlightenment, publishes this guide and works in the commercial insurance market. This is general buyer education; policy terms and state-specific obligations determine coverage and requirements.

Updated 2026-09-28. Editorial Policy

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