California Workers' Comp Insurance for Daycare & Child Care Centers

California requires workers' compensation coverage from any business with one or more employees, with no minimum headcount exemption. A licensed contractor who is a sole proprietor with no employees is a notable exception to the 'no employees, no requirement' rule: since a 2023 law change, CSLB-licensed sole proprietors must either carry a policy or file an annual Certification of Exemption even without employees, in order to keep their license active. See the Division of Workers' Compensation's employer FAQs.

Common codes for this work include 8869 Child Care Center; 8810 Clerical Office Employees; 7380 Commercial Drivers & Messengers. California maintains its own classification system (WCIRB) rather than NCCI codes. The codes below are NCCI reference codes; your California classification may carry a different number, and we match it during quoting.

Sole proprietors and general partners are automatically exempt from coverage on themselves (subject to the CSLB licensing exception above), since neither is considered an employee of their own business or partnership under California law. LLC members are typically treated as employees and included in coverage by default; a member holding at least 10% membership interest can exclude themselves through a carrier endorsement, but that exclusion requires an affirmative request rather than happening automatically. Corporate officers are also automatically considered employees and covered by default; an officer can be excluded only by owning at least 10% of issued stock, serving as a director (an officer title alone isn't enough), and executing a written waiver under Insurance Code § 11663, and most carriers cap the number of officer exclusions allowed on a single policy at around four.

Operating without required coverage is a misdemeanor under Labor Code § 3700.5, punishable by up to one year in county jail and/or a fine of at least $10,000. The state can also assess civil penalties up to $100,000, issue a stop order that prohibits the use of employee labor until coverage is obtained (violating a stop order can bring up to 60 days in jail and/or a $10,000 fine), and impose a separate penalty equal to twice the unpaid premium or $1,500 per employee, whichever is greater. If an injury claim reaches the Workers' Compensation Appeals Board, additional penalties of up to $10,000 per employee (compensable claims) or $2,000 per employee (non-compensable claims) can apply, capped at $100,000. An uninsured employer also remains directly responsible for all medical bills and can face a separate civil lawsuit from the injured worker.

Price is driven by payroll in each class code, the California rates filed for those codes, your claims history (experience modification), and underwriting factors such as total staff payroll and staff-to-child ratios; age groups served, since infant and toddler care involves more physical lifting; whether the center provides transportation for children. We compare carriers so you can see what you qualify for.

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No — the child care center classification covers all employees at the center together, including teachers, aides, kitchen staff, and clerical staff, reflecting how much roles overlap at a typical center.

Age groups served are one factor carriers consider, since infant and toddler care generally involves more physical lifting and hands-on assistance than programs serving older, more independent children.

Generally yes, the child care center classification applies to the daycare staff and operations regardless of whether the center is standalone or operated as part of a larger church or nonprofit.

Yes. California requires coverage for any business with one or more employees, with no minimum headcount exemption.

Only if the officer owns at least 10% of issued stock, serves as a director, and executes a written waiver under Insurance Code § 11663; an officer title alone isn't enough, and most carriers cap officer exclusions at around four per policy.