California Workers’ Compensation Insurance
Workers’ Compensation insurance, also known as Workers’ Comp or Workman’s Comp, is insurance that covers injuries or illnesses stemming from an employee’s work as well as death benefits. Workers’ Compensation will cover medical expenses, partial wages, and rehabilitation for employees who are hurt or become ill on the job. If an injured worker sues the company, then Workers’ Compensation also covers the legal fees.
Who is required to purchase Workers’ Compensation Insurance?
If you have employees, either full or part-time, you are required by law to provide Workers’ Compensation Insurance. Coverage can be purchased directly from an insurance company either directly or through a broker, purchased through the State Compensation Insurance Fund, or it can be self-insured. There are specific criteria for self-insurance and it requires approval from the state.
Workers’ Compensation Premiums
Workers’ Compensations premiums are payroll based. Rates are determined by class code, with the more dangerous employee classifications having higher rates than lower hazard employee job classifications. Insurance premiums are based on these rates per $100 of payroll.
The claims history will also affect the premium. The Experience Modification (X-Mod) is determined by the State Bureau and it reflects the claims history of each business. Excellent claims history will have X-mods below 1.00, which will lower their premiums. Those with adverse claims history will have an X-mod of over 1.00, which will increase their premiums.
Benefits of Workers’ Compensation Insurance
Without coverage from Workers’ Compensation, you can be sued for any injury or illness that an employee incurs. If an employee dies, their family could sue you. Without coverage, those costs, as well as the court and legal fees. These costs easily average over $35,000.
Workers’ Compensation is not only required, but it is a vital part of getting an injured employee back to work. By reporting accidents immediately and not waiting to get care, workers are able to recover faster and costs are reduced. Return to Work programs helps employees get back to work sooner. By working with employees to create modified or light return to work duties that fit within the doctor’s guidelines, it will help lower costs.
Workers’ Compensation, along with a Return to Work Program and a Safety Program are vital to keeping your business and employees safe and protected. Safety Programs and job training help to prevent accidents before they happen and clearly outlines the steps to take for any incidents or injuries in the workplace.
At Fixated Financial and Insurance Solutions, we have multiple in-house Workers’ Compensation carriers. Let us help you protect your business and your employees with our excellent Workers’ Compensation programs and rates. From small businesses, to large, we have a program that is right for you, for the best coverage and the best rates.