Workers’ Compensation Insurance in California: Costs, Benefits, & Requirements

Workers’ compensation benefits are important because they protect workers if they become injured or ill due to their employment. These benefits often include:

• Medical care
• Physical therapy
• Lost wages
• Death benefits
• Disability payments

California is one of the states where workers’ compensation insurance is required, as workers’ compensation laws were adopted in 1910.

There is a no-fault system, meaning an injured worker isn’t obligated to prove that the injury was someone else’s fault to receive workers’ compensation benefits.

What’s the cost of workers’ compensation insurance for your business? 

Read on to understand everything you need to know about workers’ compensation insurance in California, including the benefits and penalties in case you don’t have it as a business owner.

If you have questions or want to check the current prices, you can contact us today and get all the information you need fast and free!

What is Workers’ Compensation Insurance in California?

California workers’ comp insurance is required for all businesses in California that have employees, and it covers all work-related injuries.

Who Needs Workers’ Comp Insurance in California?

The California workers’ compensation requirements state that every business must have it. But workers’ compensation requirements outside California differ by the state. Even if the company employs only one person, the company must purchase CA workers’ compensation insurance.

If your company is based in a different state, you need to have workers’ comp insurance for employees who work in California.

Read More: Workers’ Compensation Insurance for New Jersey

Is Workers’ Compensation Insurance Required in California?

Yes, workers’ comp insurance is necessary in California. But do you need workers’ compensation insurance if you are self-employed? Sole proprietors and independent contractors should consider having workers’ comp insurance because it can help them cover the costs if they get injured while doing the job.

Another good reason to have workers’ compensation insurance in California if you are self-employed is that your personal health insurance could deny a claim if your injury were related to work, which means you would have to pay these bills on your own.

Furthermore, if you have part-time employees, you should know that the amount of hours they work doesn’t impact their entitlement to workers’ compensation insurance in California. You can obtain an independent contractor workers’ comp waiver as a business owner. However, California law classifies all workers as “employees.” If your employees get injured and claim a file, you must prove that you’re an independent contractor.

Read More: The Ultimate Guide to Workers’ Compensation Insurance

How Much Is Workers’ Comp in CA?

Estimated California workers’ comp rates are $1.61 per $100 in covered payroll. However, the California workers’ compensation insurance cost varies among insurance companies. That’s why it’s always a good idea to shop around and look for the best company that meets your specific needs.

Besides the workers’ compensation in California rates, you will also want to consider the services they provide, how easy it is for claims adjusters to access, and how much experience the insurance company has in your industry.

Here are some of the most important factors that impact if you can find cheap workers’ comp insurance in California include:

• Payroll
• Location
• Number of employees
• Industry
• Risk factors
• Claims history
• Coverage limits

Read More: Workers’ Compensation Insurance for Florida

How Does Workers’ Comp Insurance Work in California? 

In California, employees and employers are covered by workers’ compensation settlements. This means employers are protected from expensive and lengthy litigation, and employees start receiving benefits quickly.

This also means that employers and employees can usually reach an agreement easily. If this isn’t the case, parties can contact the California DWC Information to guide them through the process. There are two types of workers’ comp settlements:

• Stipulated Finding and Award: an agreement that results in deciding that a judge would make.
• Compromise and Release: completely closes the case, and any future medical care will not be covered, even if related to an injury.

Read More: General Liability Insurance in California

What Is Covered By Workers’ Compensation Insurance in California? 

California workers’ compensation covers any eligible injury. It doesn’t matter how big or small the injury. Workers’ comp insurance will take care of you and your employees. There are two types of injuries:

• A traumatic event: Usually, these are the injuries that result from a single incident.
• Repeated exposures: These are the injuries that result from repeated exposure to dangerous situations.

Sometimes, state workers’ compensation in California covers psychological injuries as well. Psychological injuries are more complicated to prove because the laws are less clear. Still, employees who prove they got psychological injuries due to their work can make valid claims.

Read More: Workers’ Compensation Insurance for Maryland

Filing a Workers’ Compensation Claim in California

Here’s how to file a workers’ comp claim:

• Report the injury
• File the claim with your employer
• File an “application for adjudication of claim”

Make sure you don’t miss the deadline for the last step because that could get you rejected for insurance coverage. What are the deadlines for filing workers’ comp insurance? The deadlines for taking action start on the date of your injury, which is easier in case of an accident but could be a bit more complicated in case of a repetitive injury. Report your injury or illness to your employer as soon as possible.

Read More: Workers’ Compensation for Trucking Companies

Penalties For Not Having Workers’ Comp Insurance in California

If you don’t have adequate workers’ compensation insurance in California, you could face various penalties, including:

• A stop-work order requires businesses to stop working until coverage is obtained. If they fail to shut down, they could end up paying a $10,000 fine and even face some jail time
• A lien against your business’s property
• Paying twice as much your business would have paid in premiums during the period you went without the policy.
• Paying up to $10,000 per injured employee

Read More: Workers’ Compensation Insurance for New York 

Where Can I Get Workers’ Compensation Insurance in California?

East Insurance Group offers workers’ comp insurance policies in:

• Los Angeles
• Fresno
• San Diego
• Sacramento
• San Jose
• San Francisco

And other big cities in California.

Read More: Errors and Omissions Insurance in California

Who Pays for Workers’ Compensation Insurance in California?

Employers are required to pay for workers’ compensation benefits. For example, employees could get hurt if they fall, get burned, or get hurt in a car accident while doing their job.

Workers’ Compensation Death Benefits in California

Death benefits cover:

• Burial expenses with a maximum of $10,000
• They continue until the youngest minor dependent’s 18th birthday

In the case of dependents, the number of dependents impacts the coverage:

• One dependent of the family: $250,000 maximum
• Two or more dependents of the family: $290,000 maximum
• Three or more dependents of the family: $320,000 maximum
• One dependent member of the family, including one or more partial dependents: $250,000 maximum
• One or more partial dependents of the family: 8x times annual support of $250,000 maximum

Read More: Occupational Accident Insurance – Everything You Need To Know

What are California’s Permanent Disability Benefits?

Permanent total disability benefits are covered when a workplace accident results in the employee’s impairment. In this case, the injured worker receives the benefits calculated based on California’s average weekly wage.

Are you still confused about workers’ compensation insurance in California, or do you need some help getting a quote for your business? Contact us today and get all the information you need fast and for free!