Clarifications About CA Workmans Comp Insurance

A lot of questions arise when it comes to CA workmans comp insurance. Employers are sometimes unsure whether to get a policy or not especially those that have small operations. The rule of thumb is that every employee must be covered unless the only ones working for the company are the owners themselves as in a partnership or a company with officials being the sole stockholders. The partners and the corporate officers in this case may still get coverage for themselves but it will be at their own discretion.

It is considered as part of the cost of doing business in the state so the employees cannot be asked to contribute to the fund. In essence it is a compromise agreement wherein employers take care of their injured workers to avoid potentially costly suits. If a business hires even one employee then CA workmans comp insurance comes into play. This is true whether the status is full-time or part-time. Even temporary helpers like during the holiday season are entitled to coverage. Gray areas should be discussed with a lawyer or insurance agent.

The California Department of Insurance website has a list of authorized providers in the state. Employers can browse this list and ask for quotes from several brokers for comparison. Shopping around is the key to finding a good price. However do not focus solely in the cost as other things should be taken into consideration like accessibility service level familiarity with the industry medical network competence and more. Members of local trade groups can ask for assistance from the organization so that they can get a good deal both in price and in benefits.

Be aware that the rates are unregulated so they can vary quite a bit. The annual premium will depend on several factors including the company’s record of work-related injuries the industry it operates in the payroll special concerns and available discounts. Employers must study all their options carefully to get the best possible arrangement. It would be best to go over the legal requirements and the insurance choices with a competent lawyer to avoid any misstep.

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