Workers’ Compensation Coverage for California Employers
California employers are generally required to provide workers’ compensation benefits when they have one or more employees. Certain contractors may also be required to carry coverage even when they report having no employees.
Jose Estrada helps eligible California employers explore workers’ compensation insurance based on their operations, employee duties, payroll, claims history, and coverage requirements. Assistance is available in English and Spanish.
What Workers’ Compensation Insurance May Provide
Workers’ compensation insurance may provide eligible employees with benefits for covered work-related injuries or illnesses, including:
- Necessary medical treatment
- Temporary disability benefits
- Permanent disability benefits
- Supplemental job displacement benefits
- Death benefits for eligible dependents
- Other benefits required by California law
The policy may also include employers’ liability coverage for certain employee injury claims that are not addressed exclusively through the workers’ compensation system.
Who Needs Workers’ Compensation Insurance?
A California business with one or more employees generally must satisfy the state’s workers’ compensation requirements.
Requirements may apply to:
- Full-time employees
- Part-time employees
- Seasonal employees
- Family members working for the business
- Corporate officers or members who have not qualified for an exclusion
- Workers who may have been incorrectly classified as independent contractors
- Certain contractors even when they have no employees
Business structure, ownership, employee duties, and applicable exclusions should be reviewed carefully.
What Determines the Premium?
Workers’ compensation premiums may be affected by:
- Employee job classifications
- Estimated annual payroll
- Number of employees
- Type of work performed
- Business location
- Claims history
- Experience modification
- Safety programs
- Use of subcontractors
- Carrier underwriting requirements
Employees performing different types of work may need different classification codes.
Payroll Audits and Policy Changes
Many workers’ compensation policies are subject to a payroll audit after the policy term. The carrier may compare the estimated payroll and classifications used at the beginning of the policy with the business’s actual records.
Changes in payroll, employee duties, ownership, business operations, or use of subcontractors should be reported promptly. An audit may result in an additional premium or a return premium.
Independent Contractors and Subcontractors
Calling a worker an independent contractor does not automatically determine that worker’s legal classification. California agencies and courts consider multiple factors when deciding whether a worker is an employee.
Businesses using subcontractors may be asked to provide certificates of insurance showing that the subcontractors maintain their own workers’ compensation coverage. Uninsured or improperly classified subcontractors may affect eligibility, premiums, and audits.
Businesses We May Assist
Workers’ compensation insurance may be available for eligible:
- Contractors
- Landscapers and gardeners
- Janitorial and cleaning companies
- Restaurants and food businesses
- Retail stores
- Tire shops and auto-repair facilities
- Auto dealers and body shops
- Offices
- Wholesalers
- Property-management businesses
- Other California employers
Eligibility depends on the operation, employee duties, payroll, claims history, location, and carrier underwriting.
Information Needed for a Quote
Information requested may include:
- Legal business name and DBA
- Business structure
- Business address
- Description of operations
- Employee duties
- Estimated annual payroll
- Number of employees
- Ownership information
- Prior workers’ compensation coverage
- Claims history
- Experience-modification information
- Use of independent contractors or subcontractors
Complete and accurate information helps carriers determine the correct classifications and pricing.
Request a California Workers’ Compensation Insurance Quote
Tell us about your business, employees, job duties, payroll, current coverage, and claims history. We will contact you to gather additional information and discuss available workers’ compensation options.
Submitting an inquiry does not bind, change, or provide insurance coverage. Do not cancel existing insurance until replacement coverage has been confirmed in writing.
Frequently Asked Questions
Is workers’ compensation insurance required in California?
California employers with one or more employees generally must provide workers’ compensation benefits. Certain contractors may have additional requirements even when they do not have employees.
Do I need workers’ compensation for one part-time employee?
Generally, yes. California’s requirement can apply even when a business has only one part-time employee.
Do family members working for the business need coverage?
Family members may still be considered employees. The relationship, business structure, duties, and compensation should be reviewed before assuming that an exclusion applies.
Are business owners included in workers’ compensation coverage?
Coverage and exclusion rules depend on the business structure, ownership percentage, duties, and California law. A qualifying owner may need to complete specific documentation to be excluded.
Are independent contractors covered?
A worker is not automatically an independent contractor simply because the business uses that title or issues a Form 1099. Worker classification depends on the actual working relationship and applicable law.
What does workers’ compensation cover?
Workers’ compensation may provide medical treatment, disability benefits, supplemental job displacement benefits, death benefits, and other benefits for eligible work-related injuries or illnesses.
Does workers’ compensation cover injuries to customers?
No. Injuries to customers or other third parties are generally addressed through general liability insurance, not workers’ compensation.
How is workers’ compensation premium calculated?
Premium is commonly based on payroll, employee classifications, type of work, claims history, experience modification, location, and carrier underwriting.
What is a workers’ compensation payroll audit?
An audit compares the payroll and classifications estimated at the beginning of the policy with the business’s actual records. The final premium may increase or decrease based on the audit.
What is an experience modification?
An experience modification is a rating factor that may compare an eligible employer’s claims experience with that of similar businesses. It can affect the workers’ compensation premium.
Can I obtain a certificate of insurance?
After qualifying coverage has been issued, a certificate of insurance can generally be provided as evidence of coverage. A certificate does not change or expand the policy.
Is assistance available in Spanish?
Yes. Se habla español. California employers may request assistance in English or Spanish.
Does submitting the form activate coverage?
No. Submitting an inquiry or receiving a quote does not bind or activate insurance. Coverage begins only after all carrier requirements are satisfied and binding or issuance has been confirmed.