Worker's’ Compensation Insurance
What is workers’ compensation?
Workers' compensation insurance (commonly known as “workers’ comp”) is a no-fault insurance designed to cover employees' medical expenses and lost income due to work-related injuries. It aims to support workers while protecting employers from potential financial strain.
In California, this coverage is mandatory for all businesses with employees.
What does it cover?
If an employee is injured on the job, workers' compensation covers their medical expenses and lost wages.
Common causes of workplace injuries include:
Lifting heavy equipment
Slips and falls
Strains from repetitive motions
What is not covered?
Workers' compensation does not cover injuries that occur outside the scope of employment, such as playing soccer on the weekend with friends.
Do I need to buy workers’ comp?
Yes, if you have one or more employees, purchasing workers' compensation insurance is mandatory under California law.
How much is it?
Workers' compensation premiums are determined by:
The type of industry your business operates in
The number of employees you have
Your claims history