Workers’ Compensation Insurance
What is workers’ compensation?
Workers’ compensation insurance (also known as “workers’ comp”) is a no-fault insurance that was created to cover workers’ medical expenses and lost income in the event of an injury on the job. It was created to help employees without bankrupting the employer.
If you have employees, then this is a mandatory coverage in the state of California.
What does it cover?
If the employee is injured on the job, workers’ comp covers medical expenses and lost wages.
Employees can get injured from lifting heavy equipment, slips and falls, or other strains.
What is not covered?
If the employee got injured not within the scope of their employment, such as playing soccer on the weekend with friends, workers’ compensation will not cover them.
Other exclusions also apply, which could include injury occurring from commuting to and from work, or due to intoxication or substance abuse.
Do I need to buy workers’ comp?
If you have one or more employees, then yes. It is mandatory by California law.
How much is it?
Premiums are determined by:
Your business industry type
Number of employees you have
Claims history
