A Guide to Workers’ Compensation Insurance in California

✆ Call An Agent Now ➜

9:00am - 6:00pm Mon-Fri 

Request an Assessment

Will Reply in 15min*

If you're a business owner in California, chances are you're required to have workers' compensation insurance. But what exactly is workers' compensation insurance, and what does it cover? In this blog post, we'll provide a brief overview of workers' compensation insurance in California and answer some of the most frequently asked questions about this type of coverage.



What is Workers' Compensation Insurance?



State laws require most employers to carry workers' compensation insurance, also known as work comp or WC. This type of coverage pays for medical expenses and lost wages that result from a job-related injury or illness. It may also provide death benefits to dependents if a worker dies due to a workplace accident.

What Does Workers' Compensation Insurance Cover in California?



Workers' compensation insurance in California covers medical costs associated with a job-related injury or illness, including doctor visits, hospital stays, and prescription medications. 


It also provides wage replacement benefits to injured workers who cannot work due to their injury or illness. 


Death benefits are provided for the dependents of an employee who dies due to a workplace accident. In addition, the coverage provides legal protection to employers by limiting their liability in case of an injury or illness at work.

What Does Workers Compensation Insurance Not Cover in California?


Workers' compensation insurance in California does not cover injuries or illnesses that are caused by an employee's negligence or willful misconduct or that occur outside the scope of employment. These may include injuries or illnesses that are caused by an employee's criminal activity, intoxication, or drug use. In addition, the coverage does not provide benefits for pain and suffering due to a workplace injury or illness.

Who is Required to Carry Workers' Compensation Insurance in California?


Most employees, including part-time and temporary workers, must be covered by their employer's workers' compensation insurance in California. Employers with at least one full-time or part-time employee are required to carry the coverage. However, some exceptions exist, such as certain agricultural workers and unpaid volunteers.

Penalties for Not Having Workers' Compensation Insurance in California


Employers who fail to carry workers' compensation insurance in California may face steep penalties, including fines of up to $10,000 per worker and up to a year in jail. In addition, employers may be liable for medical expenses and wage replacement benefits if their workers suffer an injury or illness related to their job.

How much will workers' compensation insurance cost me in California?


The cost of your workers compensation insurance policy in California will depend on a number of factors, including the size and type of your business, your industry, your claims history, and the number of employees you have.


However, there are some general trends that can give you an idea of how much you can expect to pay for workers' compensation insurance in California. First, you should know that California's average workers' compensation insurance cost is about $1.50 per $100 of payroll. This means that if your business has a monthly payroll of $10,000, you can expect to pay around $150 per month for workers' compensation insurance.


In addition, you should expect to pay more for coverage if your business is considered high-risk or if you have a high number of claims. High-risk businesses include those in the construction industry and those with a high rate of employee turnover.


The other factor that will affect your workers' compensation insurance cost is the type of policy you choose. Most California businesses offer their employees either a Statutory or Non-Statutory plan. The Statutory plan is the most common and includes medical and indemnity benefits, while the non-Statutory plan offers only medical coverage.

Choosing The Right Workers' Compensation Insurance in California


The coverage you select for your workers’ compensation insurance should provide adequate protection for both you and your employees while also being affordable.


You can start by getting quotes from several different insurers in California and comparing their rates and coverage levels. It's also a good idea to speak with an experienced workers' compensation insurance agent who can provide you with advice on which policy is right for your business.


Finally, make sure you read the fine print of any policy you're considering and ask questions if there's something you need help understanding. By taking the time to shop around and compare policies, you can ensure you have the best workers' compensation insurance for your business in California.

How to File a Workers' Compensation Claim in California


If you or one of your employees suffers an injury or illness related to their job, they may be eligible for workers' compensation benefits. To file a claim in California, the employee must notify their employer within 30 days of the incident and complete an official form called a "Notice of Injury or Illness".


The employee must also provide the employer with a copy of their medical records and any other relevant documents related to the incident. Once the claim form is filed, the employer will contact their workers' compensation insurance provider, who will then review the claim and decide whether or not to approve it.


If approved, the insurance company will pay benefits to the employee in accordance with California's workers' compensation laws. The employee can also file a claim directly with their insurer, but it is usually best to let the employer handle this process.

How to Appeal a Denied Workers' Compensation Claim in California


If your employer's insurance company denies your workers' compensation claim, you have the right to file an appeal. In order to do so, you must submit a "Request for Reconsideration" form within 30 days of the denial.


Once this form is submitted, an independent review board appointed by the Workers' Compensation Appeals Board will review your case and decide whether or not to approve your claim. You can also submit additional evidence during this process that may help prove that you are entitled to benefits.

Have Questions? Compare California Workers' Compensation Insurance Quotes


If you still need to figure out the best workers' compensation insurance for your business in California, getting quotes from multiple insurers is always a good idea. Comparing coverage levels and rates can help you find the plan that provides the most protection at the most affordable price.


At Brighton Financial and Insurance Services, we can provide you with California workers' compensation insurance quotes from multiple providers so that you can easily compare them side-by-side. Start your quote today to find the best coverage for your business!

Request A Workers' Compensation Insurance Quote

Get Started Today!

We'll Reply in 15min or less*

Contact Us

*Response time varies based on hours of operation

Share by: