I Just Hired My First Employee in California
California requires workers' compensation coverage once you have employees, and it needs to be in place before the first shift. Tell us the job duties, your payroll estimate, and your entity type, and we place the policy with a California-admitted carrier and explain how the audit works.
In insurance since 1981 Independent agency CA Lic. 0606906
Why Does the First Hire Change Everything?
- 01
General liability does not do this
Liability covers injury to other people. Injuries to your own employees are handled by workers' compensation, and the two do not overlap.
- 02
Owners and officers
Whether an owner or officer is covered or excluded depends on your entity type and the elections you make. It is worth getting right on day one.
- 03
Contractors who are really employees
Classification is decided by how the work is directed, not by what the invoice says. A misclassified worker becomes your exposure.
- 04
Job duties drive the rating
The policy is rated on payroll by class of work. Describing duties accurately at the start keeps the audit from surprising you.
What Do I Put in Place Before the First Shift?
A workers' compensation policy, bound before your employee starts work.
We need your entity type, the job duties, your estimated payroll by role, and whether owners or officers will be included. From there we place the policy with a California-admitted carrier and give you the required posting notices for your workplace.
This is also the point to look at the rest of the program. Employees driving their own vehicles for work need hired and non-owned auto, and employment practices coverage becomes relevant the moment you have staff.
Coverage has to be in force before the first shift, not the first payroll run. Do not let a start date arrive without the policy bound.
How a Workers' Comp Premium Is Built
The policy is rated on payroll, split by class of work. The same payroll in two different roles prices differently, which is why duty descriptions matter.
Your experience over time affects the rating once you have history. A new employer starts without that history and builds it.
Premium is estimated at the start and trued up at audit against your actual payroll. Estimating honestly at the start is what keeps the audit uneventful.
Related Coverage and Reading
Straight answers, in their words.
“PLACEHOLDER_ verbatim Kevin Cox review pending. Quote as written, including the typo; trim with an ellipsis if needed.”
First Employee — FAQ
Do part-time employees count?
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Am I covered as the owner?
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What is a payroll audit?
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Non-renewed, or having trouble finding coverage?
Send us the notice or tell us what's been declined. We read it with you, check the California-admitted carriers we represent for your address, and explain the FAIR Plan with a companion policy where that's the route — and what each does and does not cover.
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Talk to a licensed agent.
Call or send a note and tell us what you need covered. A licensed agent gets back to you — not a queue — with which carriers can write it, what the policy excludes, and what happens next.
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3910 Prospect Ave, Unit C, Yorba Linda, CA 92886
Last updated September 2026