Workers' Compensation Insurance provides benefits to employees who are injured or become ill during the course of or due to employment. In California, every employer is required to carry insurance to cover the cost of occupational injuries and illnesses. This insurance requirement is mandatory even if you have only one part-time employee. Companies based out-of-state with employees hired in California must also have California workers' compensation insurance. Assembly bill 279 states that business owners who intentionally operate without workers compensation in California are subject to possible prison sentence and up to a $10,000 fine. Request Quote