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If you’re a California contractor and your Workers’ Comp is still with the State Fund, there’s a strong chance you’re paying thousands more than you should. We see it every week: good contractors with clean histories stuck in overpriced policies—and they don’t even know it.
This post breaks down why State Fund is expensive, who’s paying too much, and exactly how to switch without risk or coverage gaps.
🏢 What Is the California State Fund?
The State Compensation Insurance Fund (SCIF) is a state-run option for Workers’ Comp. It’s designed to be a fallback—especially for high-risk or new businesses that struggle to get private insurance.
But what many contractors don’t realize is: State Fund is often your most expensive option.
💰 Why State Fund Costs Contractors More
Here’s the honest truth: State Fund does not compete on price. Their job is to accept everyone, not to offer the best rate. That means their pricing models are cautious, one-size-fits-all, and rarely optimized for contractors.
Here’s why costs are so high:
No incentive pricing: They don’t reward contractors for being claim-free.
Flat classifications: They don’t tailor rates to your specific trade or job duties.
Hidden fees and surcharges: Many policies include “adjustments” that inflate the premium quietly.
Even if your business is stable, safe, and has a solid history—you’re paying like you’re high risk.
🔍 Are You Overpaying? Let’s Find Out
Ask yourself these questions:
Are you a general contractor or construction trade in California?
Do you have Workers’ Comp through State Fund?
Have you had few or no claims in the past 3 years?
Are your annual premiums above $5,000?
If in a High-Risk Trade, are your annual premiums above $50,000?
If you answered yes, you’re almost definitely overpaying. We save contractors like you 30–60% every single week.
🔄 How to Switch from State Fund—Step by Step
Good news: Switching is faster and safer than you think. Here’s how:
1. Call Us at (949) 749-7044
Answer a few easy questions and we’ll review what you have for free and compare it with private alternatives.
2. We Shop Specialized Carriers
We only work with insurance companies that understand contractors. Our team checks current class codes, potential discounts, and safety credits.
3. Get a Quote & Make the Move
You’ll get a custom quote (often within 24 hours) and we’ll walk you through switching with zero lapse in coverage.
4. We Handle the Paperwork
We’ll help handle the paperwork needed to switch, so you can notify State Fund of your cancellation. We make sure your new policy is active, filed, and compliant with CSLB and labor law.
📉 Real Example: State Fund vs Private Carrier
A Santa Rosa plumbing contractor with $120,000 in payroll was paying $24,000/year to State Fund. After switching through us, his premium dropped to $11,800 with a private carrier.
Same coverage. Same limits. Just smarter.
🧠 The #1 Mistake Contractors Make
They assume State Fund is their only option.
It’s not. Unless you’ve had major claims or serious classification issues, you can almost always switch—and save thousands doing it.
🛡️ What About Coverage Gaps?
We get this a lot. “Won’t switching leave me uncovered?”
Nope. Your new policy is timed to activate as your State Fund policy ends. There’s no lapse, and we handle the entire transition.
✅ Why Cal Commercial Insurance?
We specialize in California contractors
95% of our clients save money by switching
We know how to handle State Fund exits
We deliver same-day quotes
We help guide you through all the compliance with no extra fees
📞 Ready to Switch? Start Here.
If you’ve got a State Fund Workers’ Comp policy in California and you’re ready to stop overpaying, here’s your next step:
🔹 Call (949) 749-7044
🔹 Or get your free side-by-side quote at calcommercialinsurance.com
🔹 Give us details about your current policy—we’ll take care of the rest
Stop giving away your profits. Start protecting your crew smarter.
Let’s switch you from State Fund—and keep more of your hard-earned money where it belongs.
* Cal Commercial Insurance is an independent insurance agency specialized and represents construction contractor clients and is not affiliated with, endorsed by, or sponsored by the California State Fund or any state-funded program.
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