Workers’ compensation insurance provides your company with insurance for employee work-related injuries or illnesses. This type of insurance can help pay for medical costs, lost wages, disability, vocational rehabilitation, and death costs associated with a covered event.
RCU Insurance Services provides companies of all sizes with the information and resources they need to comply with California’s workers’ compensation laws. Contact us today to learn more about this essential coverage and to get a quote.
Is Workers’ Compensation Insurance Required in California?
California requires employers to carry workers’ compensation insurance if they have one or more employee. Also, out-of-state employers who regularly do business in California may need to purchase a workers’ compensation insurance policy that complies with California’s laws.
In California, workers’ compensation coverage provides five coverage types:
- Temporary disability benefits
- Permanent disability benefits
- Supplemental job displacement benefits
- Medical care
- Death benefits
Workers’ compensation laws are common throughout the United States, and most states require employers to carry it.
Can Businesses Self-Insure in California?
Under certain circumstances, your company may be able to self-insure for workers’ compensation in California.
Talk with your insurance agent about California’s laws governing self-insurance. If you’re eligible to self-insure, they can help you understand regulations about state approval and required minimum net worth and net income thresholds.
How Much Does California Workers’ Compensation Insurance Cost?
The employer is responsible for 100% of the costs of workers’ compensation insurance premiums. Unlike some other types of insurance, employees are not expected to pay any portion of the premiums.
Workers’ compensation premiums are based on employee classification, payroll, and the company’s experience modification.
Insurers evaluate your business based on the type of work your employers typically perform, your history of past workers’ compensation claims and work-related injuries, the size of your payroll, and any special underwriting adjustments.
Costs can vary from one insurer to the next, so working with an insurance agent who has experience facilitating workers’ compensation coverage with reputable insurers is crucial
Why Should California Employers Buy Workers’ Compensation Insurance?
Workers’ compensation insurance provides employers with insurance that covers their employees’ work-related injuries or illnesses. Without workers’ compensation insurance, your company may face steep fines.
If there is an employee work-related injury or illness, the employer must report the claim to their workers’ compensation insurance provider. This starts the claim process and allows the employee to receive benefits.
Even if your employees have access to high-quality healthcare benefits, personal healthcare benefits may not provide coverage for work-related injuries and illnesses.
Offering workers’ compensation benefits to your employees can help them get the support they need to heal and recover so they can return to work.
How to Get Workers’ Compensation Insurance in California
Employers in California must purchase workers’ compensation insurance through California’s State Compensation Insurance Fund or from a licensed insurance company. For some companies, it may be challenging to get workers’ compensation from a private insurer. In this case, the State Compensation Insurance Fund can help provide the necessary coverage.
RCU Insurance Services helps California employers get the most cost-effective workers’ compensation insurance from reputable private insurance companies. Contact our agents today to get a quote.
Learn more about worker’s compensation insurance.