What is workers' comp?

Workers' compensation insurance, commonly known as workers' comp insurance, is a type of insurance required by law carried by many businesses.  This insurance typically covers medical expenses and lost wages for injuries, disabilities, or illnesses sustained in the course of their work (usually, the insurance does not cover injuries sustained off work).

Nearly all states in the United States require workers' comp; in California, failing to have workers' compensation coverage even if for just one employee is a criminal offense​, punishable by up to 60 days in county jail and/or a fine of $10,000 (with up to $100,000 if there is an open claim). Workers' comp provides equitable compensation towards employees injured on the job; moreover, workers' comp also protects employers from extra litigation. 

For more information regarding California law, please visit the State of California Department of Industrial Relations

Workers' compensation insurance typically covers approved medical costs, disability payments (temporary and payment) from loss of wage, and death compensation, as well as protects companies from being sued by employees. 

PROTECT YOUR BUSINESS, PROTECT YOUR PEOPLE

WORKERS' COMPENSATION

Protect Your People

Protect your employees and yourself from lawsuits.

Not only can workers' compensation coverage cover your people, but it can also protect yourself from outside litigation. 

 

Workers' compensation in California is legally required to have  3 parts:

  • workers' compensation - employer must legally provide to employees who suffer job-related injury or diseases 

  • employers' liability insurance - covers employers against lawsuits filed by employees 

  • other-states

Moreover, all employees are required to provide notice to employees for the proper procedure for injuries and notice of the workers' compensation carrier and coverage. (See the notice poster here and more information here.)

How are workers' compensation premiums calculated?

Generally, the process begins something like this: policyholders are charged an initial premium based on an estimated annual payroll for the year and the type of business (see: class codes). At the end of the year, policyholders are expected to report the actual final payroll to the insurance carrier; when the actual payroll exceeds estimated, policyholders pay additional premium, and when the estimated payroll exceeds actual, policyholders are refunded. If your business exceeds a certain threshold of eligibility (as of 2017, $10,100 for California see site), your workers' comp premium will be subject to an experience rating, which is a reflection of your record and loss rates, providing an incentive to reduce work-place accidents and increase safety measures, akin to driving records. An experience modification of more than 100% reflects a higher-than-average loss record. 

Independent Contractors 1099 and Me

Independent contractors legally do not require workers' compensation. However, the line between independent contractor and employee in California is often a grey one -- recall that even if there is only one part-time friend working for you, employers are required by law to have workers' compensation for employees. Even designed independent contractors may be deemed as employees in a court of law.  

A Claim Has Occurred...

Not to worry. First, for immediate medical injuries, please go to the hospital. As an employer, you need to:

1. provide a workers' comp claim form to the employee within one working day

2. complete the claim form and send a copy to employee and insurance carrier

3. contact us for detailed resolution and complete the following forms: 

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