Workers’ compensation coverage is legally required in every state. In some, there are exceptions and waivers available based on business type, revenue and the number of employees. In California, all businesses must prove their ability to pay worker costs through insurance or self-insurance. This usually means obtaining workers compensation insurance in California.
What Does Workers Comp Cover?
In general, workers’ compensation covers lost wages, medical bills and some return-to-work programs. It also pays a benefit in the event an accident results in permanent disability or death. However, every policy is unique, so be sure to ask your agent about coverages specific to yours.
Are There Exclusions?
Just like with anything, there will be some exclusions. For workers’ compensation insurance in California, these may include an accident that occurs under the influence of drugs or alcohol, injuries to independent contractors or non-covered company officer or employment discrimination claims.
How Much Does Coverage Cost?
Costs for coverage vary depending on several factors. These may include your estimated risk level, the industry you operate in, previous safety records and the number of employees covered. That means that companies do have some control over costs. Developing and implementing a safety program that reduces accidents and injuries can help bring rates down.
There is no replacement for a knowledgeable insurance agent when you need answers to your questions about workers’ compensation requirements, cost containment and risk management.