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California Workers' Compensation Insurance
Protect your business and employees with California workers' comp
Whether you run a tech company in Silicon Valley or a farm in Bakersfield, securing workers' compensation insurance in California is important. This coverage provides financial and medical benefits to employees who become injured or sick because of their job. Workers' comp also helps businesses reduce liability, support employees, and comply with state laws.
Learn more about workers' compensation insurance and see how experts at Progressive Commercial can help you get the right coverage for your California business.
Who needs workers' compensation insurance in California?
California workers' compensation laws typically require all employers to carry workers' comp if they have one or more employees, regardless of whether they're full or part time.
Even businesses headquartered out of state might need California workers' compensation if they have employees who work there. Depending on the terms, they could also need coverage if they enter into certain employment contracts.
California workers' compensation insurance exemptions
Some exemptions to the workers' compensation rules in California include:
- Independent contractors: Independent contractors are hired to do specific jobs, but they are not employees and can work for more than one company at a time. Explore information on workers' comp for self-employed and independent contractors.
- Sole proprietors: Sole proprietorships are owned and operated by one person. Learn more about business insurance for sole proprietors.
Volunteers are also usually excluded from workers' comp California laws, though you might need to get coverage if you provide any benefits, such as a stipend.
What are the penalties for not having workers' comp in California?
Because it's required by law, there are penalties for not having workers' compensation insurance in California. Carrying the correct amount of coverage prevents serious consequences, such as:
- A stop order being issued on your business
- County jail time of up to one year
- Financial penalties of up to $100,000
- Employee lawsuits
- Paying employee medical expenses out of pocket
- Business closure
The best way to avoid these legal, financial, and operational risks is to follow workers' compensation laws in California and get insurance.
How much does workers' comp cost in California?
California workers' compensation insurance cost depends on several features of your business, including:
- Job classification code: The Workers' Compensation Insurance Rating Bureau of California (WCIRB) assigns classification codes for different jobs based on overall risk.
- Payroll: Your California workers' comp premium is typically calculated per $100 of your business's total payroll. The higher your payroll, the greater your insurance cost.
- Claims history: Your Experience Modification Rate (EMR) adjusts your California workers' comp cost based on your claims history. If your company has more claims than average for your industry, your EMR will be higher, increasing your premium. Fewer claims can result in a lower EMR and reduced rates.
- Insurance carrier: Insurance companies can offer different rates based on their criteria and risk assessment.
Starting a quote is the easiest way to discover how much you'll pay for California workers' comp insurance.
How can you get workers' comp in California?
You can get California workers' compensation insurance three ways:
- Private insurers: Many businesses purchase CA workers' compensation policies through private insurance companies. These insurers can customize coverage and offer additional benefits and discounts for things like safety training. Ask about special features when getting a Progressive Commercial quote.
- State fund: Any California employer can apply for coverage through the state workers' compensation fund. This option is good for businesses in high-risk industries or with a history of claims that might make private insurance more expensive.
- Self-insurance: Approved companies can self-insure in California. These businesses set aside money to handle workers' comp claims in-house. This option can help companies save on their premiums, but they assume all financial risk and administrative responsibilities.
How does workers' comp work in California?
Workers' compensation insurance in California secures necessary care for employees with work-related injuries and illnesses. After an employee reports an injury to their employer, they'll file a claim. If approved, the employee will start receiving financial support.
Workers' comp benefits in California include:
- Medical expenses
- Disability benefits
- Death benefits
- Lost wages
- Rehabilitation costs
Workers' comp also provides a structured process for resolving disputes and facilitating the employee's return to work. Additionally, it can protect employers from costly fines and lawsuits.
California workers' compensation statute of limitations
Employees typically have one year from the date of their injury or illness to file a workers' comp claim in California. However, there are some exemptions to this rule. For example, if their injuries occur over time, they'll have one year from their date of diagnosis to file.
Get a California workers' comp quote with Progressive Commercial
Progressive Commercial makes it easy to get workers' compensation insurance in California. We're here to help you meet state requirements and protect your small business. You'll also gain access to our outstanding customer service and fast claims processing.
Call us to speak with an agent or start a quote online today.
