Workers' Compensation Insurance

Workers' compensation insurance is mandatory for most businesses if they have employees, or even 1099 independent contractors, no matter what the job requires. It covers medical costs and a portion of lost wages for employees who become injured or ill on the job.

Workers' compensation is like an airbag for your business. When trouble strikes, it deploys to help your employee get back to work as fast as possible, minimizing the damage to your business.

If that sounds like a luxury to you, keep in mind, it's probably a good thing for your business. Imagine having to pay for a slip-and-fall accident out of your business checking account.

It’s a good thing for you and your employees.

Workers' comp insurance may also protect you from being sued by employees for workplace conditions, when a court finds your company liable in causing an injury or illness to your employees.

Under normal circumstances, fault does not matter in a workers compensation claim. And each state has its own workers' compensation system, which is a mandated program to compensate employees who are injured in a workplace accident or become ill because of the job.

It’s designed to ensure payment by employers for some part of the cost of injuries, or in some cases, of occupational diseases, contracted by employees in the course of their work. Keeping a safe workplace, and strictly enforcing your Code of Safe Practices is a good way to manage risk, so the carelessness doesn't come into play.

Since workers' comp insurance typically only covers injuries or illnesses when they occur as a result of duties performed on the job or while at work, the scope of the coverage of the policy is limited to duties performed by employees.

Injuries that may be covered by workers' comp insurance include lifting heavy equipment, slipping on a wet or oily surface, or sustaining injury in an auto accident.

How to apply for workers' compensation - 

Depending on your type of business, underwriters may ask these questions, to determine appropriate rate for your particular business - 

• Your loss history is one of the biggest factors - your claims/injury history
• How many full-time and part-time employees you have
• Driving - how often and how far employees drive, and what types of vehicles
• Lifting - how much lifting is done without assistance (example - another individual or a forklift)
• Height and depth - how high do employees work, and how deep
• Closed spaces - do they work in tight, enclosed places
• Personal protective equipment - what do you provide in the way of gloves, hardhats, steel-toed shoes, goggles etc
• You may also be asked questions specific to your particular industry
  

What does workers' compensation cost - 

Workers' compensation is based on a rate per hundred dollars of payroll, and the rate will vary from classification to classification.  Riskiest occupations will cost the most, and those such as office work are inexpensive. 

Do I have to be covered if I own the company - 

Individual owners, officers of a Corporation, partners and managing members of a Limited Liability Company can be excluded from coverage, provided they meet the required ownership standard.

Do I have to cover my relatives working for me -

Short answer is YES. Per California Labor Code, even your children or other relatives must be covered by workers' compensation.

Your Injury and Illness Prevention Program (safety program) must be written, and must include these sections -  

1. Management commitment/assignment of responsibilities
2. Safety communication system with employees, encouraging open door policy to report safety concerns
3. System for assuring employee compliance with the practices you've established 
4. Regular workplace inspections and evaluations
5. Procedures for investigating post-accident, to determine cause, and how to prevent it happening again
6. Procedures for correcting conditions that are unsafe or unhealthy
7. Safety and health training and instruction
8. Documenting and keeping your records
   
   

Keeping your workplace safe is the single biggest factor in controlling your workers' compensation costs.

We focus on covering local businesses like yours. We have resources you need right here, including -

• Monthly payment options 
• Pay as you go options 
• Options provided by 20+ workers' comp insurers to provide great rates
• Tailored coverage
  Combine with payroll processing for true simplicity
  

As in most states, workers' comp is highly regulated in the State of California. Below you'll see links to a few agencies and resources that may provide information you're seeking - 

• Workers' Compensation Insurance Rating Bureau (WCIRB)
• California Department of Industrial Relations
• State Compensation Insurance Fund (State Fund)
• Contractors State License Board
• California Division of Workers' Compensation
• Workers' Compensation at California Department of Insurance (Insurance Commissioner)
• Cal/OSHA - Guide to establishing a safety program
• OSHA Forms 300, 300A and 301

You may think you want the cheapest insurance you can find, but low cost isn't everything. After all, it's said there's no such thing as a free lunch.

While many insurance products are similar in price and function, insurance agents and providers are very different when it comes to structuring a policy to cover you. Your business is unique. Why would you want a one-size-fits-all insurance policy. Many of our insurance carriers offer SPECIALIZED PRODUCTS WITH UNIQUE COVERAGES for various types of businesses.

We’re your neighbors. We protect businesses and people we know and care about. And businesses and people YOU know and care about. And that means we look for ways to protect you better, including carefully choosing the insurance companies we represent, to be both affordable and responsive.

Contact us, and let us at Elk Grove's LOCAL Insurance121 Insurance Solutions help you protect THE BUSINESS YOU'VE PUT YOUR SLEEPLESS NIGHTS, YOUR MONEY, YOUR EVERYTHING, INTO BUILDING for yourself, your employees, your community and your family. We'll help you make wise choices to protect what you value most.