Worker's Compensation Insurance
What is Worker's Compensation Insurance in California?
Workers' compensation insurance protects employers and their employees in the event of a job-related injury or illness. It is designed to cover any medical costs, lost wages, and other financial losses associated with an accident on the job. This type of insurance typically covers physical and mental injuries, as well as occupational diseases that may arise from work-related activities. It also provides death benefits in the event of a fatal accident or illness due to work conditions.
We're appointed with Farmers and other top carriers, so we can compare options and help you find coverage that fits your needs with great value.
Why Do Employers Need Workers’ Compensation Insurance?
California law requires employers to carry workers' compensation insurance, even if they have just one employee. Even if not mandated by law, obtaining workers’ comp insurance provides peace of mind both for employers and employees alike. Workers' compensation insurance offers employees assurance that they will be provided with the necessary benefits should they suffer any harm related to their job duties. Furthermore, it protects employers from potentially costly litigation in the event an employee suffers an injury while at work.
What Does Workman's Comp Cover?
Workers' compensation is insurance that helps with medical expenses and other costs if someone gets hurt or sick at work. This can include payments for time off work while recovering, long-term disability payments if someone can't go back to work after an injury or illness, death benefits if someone dies because of their job, and funeral expenses in some cases. Workers' comp usually also pays for things like physical therapy and rehabilitation services that an injured person might need to get better.
How do I get Workers’ Compensation Insurance?
Employers interested in obtaining workers’ compensation insurance should contact an authorized carrier licensed to issue workers’ compensation policies in their state/jurisdiction. The carrier will determine appropriate coverage levels based on factors such as a number of employees and types of jobs performed within their organization. Once coverage has been established, a premium is typically paid annually or quarterly depending on the policy details agreed upon between the employer and insurer.
Related Services: Business Insurance
What Should I Know Before Purchasing Worker's Comp Insurance?
Before purchasing a workers' compensation policy there are several key considerations that employers should take into account:
- Coverage Modifications: Certain industries require additional modifications which might affect rates;
- Experience Modifications: This rating factor compares your actual losses to the losses expected for businesses like yours;
- Audit Adjustments: These adjustments reflect actual payroll amounts versus estimates used by insurers when setting up a policy;
- Class Codes & Payroll Allocations: Policies must be setup based on industry-specific class codes and accurately reported and tracked payroll allocations linked with each code;
- Policy Fees & Service Fees: These can vary significantly across carriers so it pays to shop around for competitive rates when possible.
Serving All of California
We help clients all across California by phone, text, and email. Our Ontario office also serves these Inland Empire communities, with in-person meetings by appointment:
Frequently Asked Questions
What should I do when an employee reports a work injury?
California requires employers to give the injured worker a claim form (DWC 1) within one working day of learning about a work-related injury or illness. Then report the claim to your insurance carrier right away and make sure the worker gets appropriate medical care. Quick reporting helps your employee and helps keep claim costs under control.
What is an experience modification?
An experience modification compares your business's actual workers' comp losses to the losses expected for businesses like yours, based on payroll and job classifications. In simple terms, it is actual losses divided by expected losses. A history of fewer or smaller claims can help your mod over time, while frequent claims can push it up.
Do contractors with no employees need workers' comp in California?
Some already do. Since January 1, 2023, licensed contractors in the C-8 concrete, C-20 HVAC, C-22 asbestos abatement, and D-49 tree service classifications must carry workers' comp even with no employees. Under SB 1455, the requirement for all other licensed contractors takes effect January 1, 2028. We can help you plan ahead.
Can I call my workers independent contractors instead?
Only if they truly qualify. Under California's ABC test, the business must prove the worker is free from its control, does work outside the usual course of its business, and is engaged in an independent business of the same kind. Workers who do not meet all three are generally employees and need workers' comp coverage.
What benefits does workers' compensation provide?
California workers' comp benefits include medical treatment, temporary and permanent disability payments, supplemental job displacement vouchers for retraining, a one-time $5,000 return-to-work payment for certain eligible workers, and death benefits for dependents. These benefits help injured employees recover and return to work.
Your local agent for Inland Empire employers
Every Inland Empire business with employees, from warehouses in Ontario and Fontana to restaurants in Rancho Cucamonga and contractors in Riverside, needs workers' compensation. Our Ontario office helps local employers get the right classification, a fair rate, and coverage that keeps them compliant.
3602 Inland Empire Blvd #C330, Ontario, CA 91764
Office hours: 9:00 to 5:30, visits by appointment
Phone: (909) 972-0699
We work with employers throughout the Inland Empire, including Ontario, Rancho Cucamonga, Fontana, Riverside, Corona, San Bernardino, Chino, and Pomona, and across California.
Workers' compensation insurance questions
Is workers' comp required in California?
Yes. California requires every employer to carry workers' compensation for its employees, even if you have only one.
What happens if I don't carry workers' comp?
Operating without required coverage in California can lead to stop orders, penalties, and personal responsibility for injured workers' costs.
How is workers' comp priced?
Premium is based mainly on your payroll and the classification codes for the work your employees do, along with your claims history.
What is a payroll audit?
At the end of the policy term, the carrier compares your actual payroll to the estimate. If payroll was higher, you may owe more, and if it was lower, you may get money back.
Do I need workers' comp for part-time or family employees?
Part-time employees generally must be covered. Rules for family members and owners vary by business type, so we review your situation.
Related coverage
- Business insurance
- Employment practices liability (EPLI)
- All industries we cover
- General contractor insurance
Farmers Insurance, Young Douglas. CA License #4091974. Coverage, discounts, and eligibility vary and are subject to underwriting.
Disclaimer
Farmers Insurance - Young Douglas provides home, auto, life, and commercial insurance products independently. References to mortgage brokers, real estate agents, or other professionals are for convenience only and do not imply a referral arrangement or financial affiliation.