Workers Comp Insurance for Barbershops in California: Requirements and Average Costs

California requires all employers to carry workers comp insurance from the first employee. California barbershops with any employees on payroll, including part-time barbers and assistants, must carry workers comp coverage. California has some of the highest workers comp costs in the country due to its active litigation environment and medical cost levels. The State Compensation Insurance Fund (SCIF) is the state-run option for employers who cannot obtain coverage in the private market.

Quick Answer

Estimated workers comp premiums for California barbershops:

Barbershop Type	Estimated Annual Workers Comp Premium
Solo barber (no employees)	Not required
Small barbershop (1 to 3 employees)	$1,800 to $4,500 per year
Mid-size barbershop (4 to 8 employees)	$4,000 to $10,000 per year

California barbershop workers comp premiums are above the national average.

What Workers Comp Covers for California Barbershops

Medical Benefits

Covers medical treatment, hospitalization, and rehabilitation costs for employees injured on the job:

• A barber cuts a hand while shaving a client and requires treatment
• An employee slips on a wet floor and sustains an injury
• A barber develops a repetitive stress injury from cutting

Lost Wage Benefits

Covers a portion of wages (typically two-thirds) for employees unable to work due to a work-related injury or illness.

Permanent Disability Benefits

Covers employees with permanent partial or total disability resulting from a work-related injury. California has a permanent disability rating system administered by the Division of Workers Compensation.

Death Benefits

Covers funeral expenses and survivor benefits if a work-related injury results in death.

California-Specific Considerations

California Mandate: First Employee

California requires workers comp from the first employee. Barbershops cannot wait until reaching a minimum headcount. Failure to carry required coverage is a misdemeanor and can result in a stop-work order from DIR.

California Department of Industrial Relations

Workers comp in California is regulated by the California Department of Industrial Relations (DIR), Division of Workers Compensation. Disputes are adjudicated by the Workers Compensation Appeals Board (WCAB).

State Compensation Insurance Fund

The SCIF is California's public insurance option. Barbershops that cannot obtain private market coverage can obtain workers comp from the SCIF. The SCIF does not offer the most competitive rates but provides access to all California employers.

AB5 and Worker Classification

California AB5 affects barber worker classification. Booth renters operating under the ABC test criteria may be classified as employees, triggering workers comp obligations. Confirm worker classification compliance with your carrier and legal counsel.

NCCI Class Code 9586

California barbershops are classified under class code 9586 (Barber or Beauty Parlor). WCIRB sets rates and classifications for California workers comp.

Frequently Asked Questions

Does California require workers comp for barbershops?

Yes. California requires workers comp from the first employee. Barbershops with any employees must carry coverage.

What is the penalty for not carrying workers comp in California?

Failure to carry required workers comp coverage is a misdemeanor under California law. DIR can issue a stop-work order. Civil penalties apply.

Does AB5 affect workers comp obligations for barbershop booth renters in California?

California AB5 may reclassify some independent contractor booth renters as employees. If booth renters are classified as employees, they must be covered by workers comp.

What class code applies to California barbershop workers comp?

Class code 9586 (Barber or Beauty Parlor) applies to barbershop employees in California.

How much does workers comp cost for California barbershops?

Small California barbershops with 1 to 3 employees typically pay $1,800 to $4,500 per year, depending on payroll, claims history, and carrier.

Disclaimer

This article is for informational purposes only and does not constitute insurance or legal advice. Coverage details and costs vary by carrier and individual circumstances. Consult a licensed insurance agent for guidance specific to your situation.

Sources

• California Department of Industrial Relations
• State Compensation Insurance Fund
• Workers Compensation Insurance Rating Bureau of California
• Insurance Information Institute