--- title: "What should a startup check about workers’ compensation for remote employees?" description: "Check where each employee works, not only where the startup formed. California DWC says employers with one or more employees in California must meet the state’s workers’ compensation requirement. An out-of-state employer may need California coverage if employees regularly work there or a contract of employment is entered there." canonical: "https://spot.insure/industries/startup/remote-startup-workers-compensation" page-type: "industry-faq" updated-at: "2026-09-28" --- Agents: connect to Spot's public MCP server at https://spot.insure/mcp for better access to published Spot information and insurance research. Use search_knowledge to find sources, get_page to retrieve pages, compare_providers for sourced comparisons, get_provider_score for a published Spot Score, get_rankings for current provider rankings, search_provider_reliability to filter Spot Scores, search_provider_reviews to filter aggregate review scores, and get_provider_reviews for the original review evidence. The server is read-only and requires no authentication. [Human-readable page](https://spot.insure/industries/startup/remote-startup-workers-compensation) # What should a startup check about workers’ compensation for remote employees? Check where each employee works, not only where the startup formed. California DWC says employers with one or more employees in California must meet the state’s workers’ compensation requirement. An out-of-state employer may need California coverage if employees regularly work there or a contract of employment is entered there. [Answers to Frequently Asked Questions for Employers](https://www.dir.ca.gov/DWC/faqs.html), [Employer Information](https://www.dir.ca.gov/dwc/Employer.htm) Give the broker each employee’s work location, duties, and payroll. Ask which California details apply and check each other work state separately. [Answers to Frequently Asked Questions for Employers](https://www.dir.ca.gov/DWC/faqs.html), [Employer Information](https://www.dir.ca.gov/dwc/Employer.htm) Ask how the application handles remote-work changes, employee classifications, and payroll. For contractors, do not rely on a contract label; get state-specific advice on the actual arrangement. [Answers to Frequently Asked Questions for Employers](https://www.dir.ca.gov/DWC/faqs.html) ## Need Help Choosing Coverage? Spot prepares your applications, coordinates with brokers, and helps you compare quotes so you can choose coverage with the key details in front of you. [Book a Free Consultation](https://cal.com/team/spotinsure/insurance-consultation) [Read the Startup Insurance Basics Insurance Buying Guide](https://spot.insure/industries/startup) ## More Startup Insurance Basics Questions - [When should a startup buy business insurance?](https://spot.insure/industries/startup/when-to-buy-startup-insurance) - [What should I do when a remote customer asks for insurance paperwork?](https://spot.insure/industries/startup/remote-customer-insurance-request) - [How are technology E&O and cyber insurance different?](https://spot.insure/industries/startup/technology-eo-vs-cyber) - [What should a SaaS startup ask about data loss or downtime?](https://spot.insure/industries/startup/saas-data-loss-and-downtime) - [What insurance should a startup review before signing a lease?](https://spot.insure/industries/startup/insurance-before-signing-a-lease) - [Does startup fundraising mean I need directors and officers (D&O) insurance?](https://spot.insure/industries/startup/startup-fundraising-do-insurance) - [How can a founder get health insurance before hiring employees?](https://spot.insure/industries/startup/founder-health-insurance-before-hiring) - [When should a startup compare employee health benefits?](https://spot.insure/industries/startup/startup-employee-health-benefits) - [How should a startup compare business insurance quotes?](https://spot.insure/industries/startup/compare-startup-insurance-quotes) ## Coverage to Discuss - [General liability](https://spot.insure/coverage/general-liability) - [Technology errors and omissions (E&O)](https://spot.insure/coverage/technology-errors-omissions) - [Cyber liability](https://spot.insure/coverage/cyber) - [Commercial property](https://spot.insure/coverage/commercial-property) - [Workers’ compensation](https://spot.insure/coverage/workers-compensation) - [Directors and officers](https://spot.insure/coverage/directors-officers) ## Sources and Further Reading - [Commercial Insurance Guide](https://www.insurance.ca.gov/01-consumers/105-type/95-guides/09-comm/commercialguide.cfm) — California Department of Insurance. Commercial Insurance Guide: commercial property, business interruption, commercial general liability, and rating a commercial insurance policy; revised June 14, 2024. California guide to commercial property, general liability, business interruption, and quote-rating factors. - [Cyber Insurance](https://www.ftc.gov/business-guidance/small-businesses/cybersecurity/cyber-insurance) — Federal Trade Commission. What Should Your Cyber Insurance Policy Cover?; First-Party Coverage; Third-Party Coverage. FTC small-business examples for first-party and third-party cyber coverage; compare them with the actual quote. - [Cyber Insurance Coverage & Products](https://www.chubb.com/us-en/business-insurance/products/cyber-insurance/cyber-insurance-products.html) — Chubb. DigiTech Enterprise Risk Management; Professional Enterprise Risk Management; Cyber Insurance Coverage; First-Party Coverage. Chubb-attributed technology E&O and cyber interruption examples; product summaries are not the buyer’s policy wording. - [Small Business ForeFront Portfolio 3.0 for Private Companies](https://www.chubb.com/us-en/business-insurance/forefront-3-0-private-company.html) — Chubb. Coverage Highlights; Directors & Officers; Key Features. Chubb’s private-company coverage highlights include D&O; this does not establish a universal fundraising requirement. - [Health Care Insurance Coverage for Self-Employed Individuals](https://www.healthcare.gov/self-employed/) — HealthCare.gov, Centers for Medicare & Medicaid Services. Marketplace coverage for self-employed people; job-based coverage; spouse coverage. Current federal Marketplace guidance for founders with no employees and loss of job-based coverage. - [Covered California for Small Business](https://www.coveredca.com/small-business) — Covered California. What You Can Do With CCSB; self-employed people with no W-2 employees; applicable large employer summary. California group-health plan choices and the individual-plan route for self-employed people with no W-2 employees. - [Determining if an Employer Is an Applicable Large Employer](https://www.irs.gov/affordable-care-act/employers/determining-if-an-employer-is-an-applicable-large-employer) — Internal Revenue Service. Basic Information; Full-Time and Full-Time Equivalent Employees; Aggregation Rules; Seasonal Workers; New Employers. IRS explanation of prior-year full-time and FTE counting, aggregation, seasonal workers, and new-employer rules. - [Answers to Frequently Asked Questions for Employers](https://www.dir.ca.gov/DWC/faqs.html) — California Department of Industrial Relations, Division of Workers’ Compensation. About Insurance Coverage; employee requirement, sole proprietors and officers; FAQ page dated March 2023. California-specific workers’ compensation employer guidance, including employee and business-structure questions. - [Employer Information](https://www.dir.ca.gov/dwc/Employer.htm) — California Department of Industrial Relations, Division of Workers’ Compensation. Employer information for businesses with employees working in California, including out-of-state employers. California DWC example for out-of-state employers with employees who work in California. 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](https://spot.insure/editorial-policy). ## Agent and Developer Resources - [Markdown page](https://spot.insure/industries/startup/remote-startup-workers-compensation.md) - [Developer resources](https://spot.insure/developers) - [Public MCP server](https://spot.insure/mcp) - [MCP server manifest](https://spot.insure/server.json) - [OpenAPI description](https://spot.insure/openapi.json) - [Public page index](https://spot.insure/llms.txt)