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Imagine this: you’re running a growing landscaping company in the San Fernando Valley. You’ve got a few employees, a steady flow of clients, and word of mouth is bringing in more work than ever. Then one afternoon, a crew member trips while unloading equipment and ends up in urgent care with a fractured ankle.
You’re hit with a flood of questions. Who pays the medical bills? Will they sue? Are you personally liable?
That’s where California workers’ compensation insurance steps in and why every business owner in 2025 needs to understand it.
What Is Workers’ Comp?
Workers’ compensation is a form of business insurance that covers medical expenses, lost wages, and rehabilitation costs if an employee is injured or becomes ill due to work-related causes. It also includes employer liability coverage, protecting your business from lawsuits related to those injuries.
What’s Required in California?
California law mandates that every employer with one or more employees carry workers’ comp insurance. This includes part-time employees, family members on payroll, and even some independent contractors depending on how they’re classified.
If you’re a homeowner hiring in-home workers, like a nanny or caregiver, and they work more than 52 hours or earn $100 or more in a 90-day period, you may also be required to carry coverage.
Failing to carry workers’ comp in California is not just risky, it’s illegal. Penalties can include steep fines, stop-work orders, and even criminal charges. And without coverage, a single injury could bankrupt a small business.
Why It Matters in 2025
With rising medical costs and increased worker protections, having proper workers’ comp coverage is more important than ever. It shows you value your team’s safety and shields your business from financial harm. Plus, many contractors and clients won’t work with you unless you provide a valid certificate of insurance.
Whether you’re operating in Tarzana, Los Angeles, or anywhere in California, workers’ comp is a non-negotiable part of your risk management strategy.
Not sure if your current policy meets California’s 2025 standards?
Let FYInsurance Solutions help. We work with California business owners to assess requirements, close coverage gaps, and ensure compliance.
Request a quick coverage review:
Protect your people. Protect your business. Let’s get it done right.
