By law, Californian employers need to provide this type of liability insurance for their employees.
Let’s take a look at some facts concerning this type of insurance that are helpful to understand as an employer:
Do you plan to be the sole proprietor?
You may purchase workers’ comp for yourself, though it usually works best to just make sure you have your own health, life, and disability insurance policies. Discuss these options with your insurance provider to weigh what type of policy best fits your needs.
If you do plan to hire employees, you will need to search for a carrier who offers workers’ compensation insurance with good rates, coverage, and ease of access to claims adjusters.
It can be helpful to find a provider that is familiar with your type of business, as well. Finding a local broker can be a huge asset as you search for the best carrier.
They do the work of researching which agencies would work well with your type of business, and have the lowest rates with the best coverage. Workers’ compensation insurance rates are not regulated by the state, unlike some other types of insurance.
This makes it even more important that you shop around for a good carrier to fit your business’s specific needs.
Once you purchase the coverage, your next step will be to post that information in a very noticeable place. You will need a large and conspicuous poster with information showing what coverage you have for workers’ compensation, and where to receive medical care for work related injuries.
If you do not have this information posted, you could face a fine of up to $7,000. As you hire new employees, you are also required to give them a workers’ compensation pamphlet with information about their rights.
Providing this type of coverage for your employees is legally your responsibility, therefore, you can not ask your employees to help pay for it. This insurance does not come out of their wages.
What you pay for your premium will depend on what type of business you run, and your past safety record. Obviously, if you own a mechanic shop, the risks of work related injury will be much higher than if you run a shop that sells musical instruments.
If you have a past history which includes claims for work related injuries, that will cause your premium to be higher than if you have a clean safety record.
If you have any questions regarding the state requirements for employers, or any other thoughts on this topic, please give me a call.
Providing workers’ compensation insurance is an important responsibility for employers, and I’d love to help you find the coverage your business needs.