California Workers Compensation Insurance- Workmans Comp

California Workers Compensation Insurance

California Workers Compensation

Effective April 2010

1. Who needs to have California workers’ compensation insurance?

If an employer has even one employee they are required by California law to have workers’ compensation insurance. Roofers may need worker’s compensation even if they have no employees. Out-of-state employers also have to carry compensation insurance if an employee is employed in California on a regular basis or a contract of employment takes place in California.

2. Am I required to obtain California workers’ compensation insurance if just my spouse and I are the sole owners of our business and have no employees?

Consultation with your insurance agent, attorney, or carrier regarding your individual situation is recommended but insurance for sole owners is usually optional. However, workers' compensation insurance is mandatory for any employees in the state of California, even if you have even one employee whether full-time or temporary.

3. Are a company’s directors or executive officers covered under California workers’ compensation policy?

Consultation with your insurance agent, attorney, or carrier regarding your individual situation is recommended. All employees of the company must be included in the policy (including corporate officers and directors) unless they are the sole owners of the company. Sole owners have the option of electing not to be covered.

4. What affects my California Workers’ compensation premium cost?

The annual premium is determined by many factors. These include your industry classification, history of work-related injuries (experience modification), payroll, or special underwriting adjustments such as use of a certified health care organization, and any special group or dividend programs for which you may be eligible.

5. What are the fines for not carrying California workers’ compensation insurance?

The California state labor commissioner determines if an employer is operating without California workers' compensation insurance and will place a stop order. This will forbid the use of employee labor until insurance is acquired. If failure to observe this order is a misdemeanor punishable by incarceration for up to 60 days, or by a fine of up to $10,000, or both. The Division of Labor Standards Enforcement may also charge a penalty of $1,000 per employee on the payroll and served, up to $100,000.If a worker files a claim that before the California Workers’ Compensation Appeals Board and a judge finds the employer had not secured insurance, the uninsured employer may be fined a penalty of $10,000 per employee on the payroll, or $2,000 per payroll employee at the time of injury if the worker's case was non-compensable, up to a maximum of $100,000.

6. If I’m uninsured and an employee is injured, what will happen?

If you fail to have California workers' compensation Insurance the offense is considered a misdemeanor, punishable by either a fine of up to $10,000 or imprisonment for up to one year, or both. Additionally, the state issues penalties of up to $100,000 against illegally uninsured employers. You are then accountable for paying all costs related to the injury or illness. Workers’ compensation benefits are only covered for job-related injuries if you are correctly insured. If you are illegally without insurance and have an employee claim, the employee can also bring a civil action against you in addition to a workers’ compensation claim.

Employee Leasing and Staffing Companies

Using a PEO or Staffing company to obtain your workers’ compensation may be a good alternative to purchasing your own workers’ comp. policy. In many cases the down payment required to obtain new workers’ compensation insurance is high and many new businesses cannot afford the down payment. Another advantage is you will never get audited because you pay as you go for your coverage.

Insurance Source represents many different leasing companies and staffing companies and will be more than happy to price your coverage using this option. In many cases these leasing companies will offer deep discounts on your workers’ compensation coverage that you will not find from a standard workers’ compensation carrier.

USL&H & The Jones Act

We have excellent workers compensation programs for these specialty risks requiring this endorsement. If you are unsure and want to read either the USL&H or Jones Act I have provided helpful links below for you convenience. I have found them to be the most detailed and good resources on the laws.

If you need a quote that requires this coverage

Click Here for a USL&H Quote

Click here for the complete USL&H Act, courtesy of Cornell University.
Click here for: USL&H & Jones Act Information
Defense Base Act Division of Longshore and Harbor Workers' Compensation

California Workers Compensation

California Workers Compensation Links

Brochure for California Workers Compensation Insurance

For the Latest workers compensation news from WCIRB Click here.

News and Legislative Updates
California Workers Compensation Act
Archived Statutes Center
California Workers Comp. Forms
California Industrial Commission Rules
Quick Facts and Contact Information
California Workers Comp. Forums

FAQ's

Employer Information