Pie Insurance has begun selling policies in California, offering small business owners in the state the convenience of shopping online to meet their worker’s compensation needs.

California is the ninth state in which Pie has launched this year.

Small businesses represent a significant portion of the California economy.

According to the U.S. Small Business Administration, they employ nearly half the state’s workforce, with 6.8 million employees, and create nearly 200,000 new jobs a year.

Workers’ compensation requirements in California are among the most robust in the nation; businesses with one or more employee must carry coverage, and penalties for business owners who fail to meet workers’ comp obligations can include six-figure fines and even jail time1.

“Purchasing workers’ compensation insurance in California has historically been a confusing, often expensive experience for small business owners,” said John Swigart, Pie’s co-founder and CEO. “With our launch in the state, we’re bringing transparency, fair pricing, and convenience to California small business owners. We look forward to moving at the fast pace Californians expect and giving them the level of service they deserve.” Pie’s research suggests that 80% of small businesses overpay for worker’s compensation insurance, by as much as 30%. Using sophisticated algorithms to segment and price workplace risks, Pie can accurately price policies and offer savings to its small business customers.

Insurance offered by Pie has earned an A rating from A.M. Best.