Workers’ Compensation in California has a specific set of rules, and many lines about proper coverage exist on the dotted line. Even the best safety measures cannot prevent every workplace injury. Accidents happen, and employees sustain injuries. Without workers’ compensation insurance, the costs associated with these injuries and the lost productivity can add up quickly.
The Facts About Workers’ Compensation in California
Business owners should protect their company’s financial stability and employees with the right coverage for workplace injuries. Likewise, creating an experience modifier can help them calculate potential losses from a workers’ comp payout.
Who Needs Workers’ Compensation Insurance in California?
The requirements for workers’ compensation coverage vary by state. Some states require coverage only for businesses of a specific size. California has comprehensive requirements for coverage. However, all businesses in the state with at least one employee must have workers’ comp insurance. Failure to comply leaves business owners facing repercussions for violation of the law. Furthermore, contractors that have higher experience modifiers will need an insurance agency that specializes in hard-to-write businesses. It will give them the needed coverage while protecting them in the event of an accident on the job.
What If Their Headquarters Is in Another State?
California’s workers’ comp laws are clear about the companies required to provide coverage. Ultimately, if a business employs anyone in California, it must have a policy. The company’s headquarters and office locations are immaterial to this statute. Therefore, even remote workers residing in California or those who have to travel must have this coverage.
Does the Staffing Structure Matter?
You might think workers’ compensation insurance is only required if the business has full-time employees. The law does not define a specific staffing structure, so an employee’s full-time or part-time status does not affect the company’s coverage obligation. Thus, any employee on the books obligates the business to secure a policy.
Do Sole Proprietors Need Workers’ Compensation Coverage?
As the gig economy gained traction, more people became sole proprietors or independent contractors. Working for yourself is rewarding, but it raises questions about business insurance. The law in California does not define a requirement for coverage in these instances.
Although no mandate exists for the self-employed, that does not discount the importance of the policy. If you’re wondering what to consider when purchasing workers comp in California as a self-employed individual, you should know it can help. Personal medical coverage may not apply to injuries sustained while working. The right workers’ compensation policy may help individuals recover lost earnings and pay their medical bills, even as sole proprietors or independent contract workers.
How Do Businesses Get Workers’ Compensation Insurance?
Each state has its own requirements for coverage providers. California business owners can get the coverage they need from a private insurance carrier to keep all their policies in one place. Alternatively, California also offers a state fund for business owners to obtain coverage. Finally, some business owners in the state may self-insure their businesses. Strict requirements apply to self-insurance, and the state must approve that request.
The right workers’ compensation coverage protects companies from potentially significant expenses if an employee suffers an injury. Offering this coverage also ensures that their employees have the financial support they need while they recover, which fosters a better working relationship. Consider the requirements for coverage in California as you assess a company’s insurance needs.
About Western Republic Insurance Services
Locally owned and operated since 2009, Gabe Stubin of Western Republic Insurance Services has delivered quality insurance solutions to individuals in Huntington Beach, California for over 17 years. Specializing in Commercial Business insurance coverage, our team of knowledgeable insurance professionals is committed to helping you find a policy that fits your needs. We focus on providing individualized attention and quality customer service to create an experience that’s difficult to find in today’s market. At Western Republic Insurance Services, we’ll work with you to ensure that you and those you care about most are protected.