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California is known for its iconic landscapes, vibrant culture and innovative spirit. From the sun-soaked beaches of Southern California to the towering redwoods of the northern forests, the Golden State offers a breathtaking array of natural wonders.
Steeped in Hollywood glamour, Silicon Valley innovation and Central Valley agricultural richness, California is a hub for business opportunities. When it comes to safeguarding your business and employees, finding the right workers’ compensation insurance is essential.
Workers’ compensation is a state-mandated insurance program for employers with one or more employees. It’s designed to provide employees who suffer work-related injuries or illnesses with medical treatment and indemnity benefits.
Friends and family members engaging in employee labor are considered employees under California workers’ compensation law.
Without workers’ compensation, the cost of a work-related injured employee’s medical treatment could become the responsibility of your business.
The Division of Workers’ Compensation within the California Department of Industrial Relations administers the workers’ comp law in the state. The law requires employers with one or more employees to be covered by an active workers’ compensation insurance policy.
Workers’ comp coverage can be obtained through a partner like EverPeak Insurance. The Office of Self-Insurance Plans can approve self-insured requests based on financial requirements.
Employees can contact the Workers’ Compensation Insurance Rating Bureau to verify if their employer has coverage.
Policies include protection for full and part-time employees.
Some exemptions from workers’ comp in California may include, for example:
Workers' compensation covers a range of work-related injuries and illnesses, including physical injuries resulting from an accident and occupational diseases that may develop over time due to job conditions.
California workers’ comp insurance provides three types of benefits for work injuries:
The weekly compensation rate in California is 66 ⅔% of the employee’s average weekly wage, not to exceed or fall below a maximum and minimum amount set by the law.
Find more information on California’s disability rates.
In the event of a work-related injury or illness:
Employees in California should report their injury to their employer immediately but no later than 30 days from the accident.
The employee should immediately seek medical attention.
Once notified of the injury, employers should file a report of the accident with their workers' compensation insurance partner within one working day.
If the workers’ compensation claim is accepted, an injured employee may begin to receive workers’ compensation benefits, such as lost wages and medical benefits.
Following their recovery, a worker is expected to resume work safely. If a work injury has left an injured employee unable to do any type of work, the employee might be entitled to permanent disability benefits.
In California, workers can predesignate a physician as their treating doctor if they notify their employer of their doctor’s name and address in writing before the workplace injury.
Some employers may use a medical provider network or healthcare organization. In this instance, the injured worker must receive treatment from a physician within the network or organization. If the employer does not use a medical provider network or healthcare organization, in most cases, the claims administrator can choose the initial treating physician.
If an employee or employer wishes to dispute a claim, they can contact the Information and Assistance Unit for information concerning rights, benefits and obligations under California’s workers’ compensation law.
Generally, employers in California with one or more employees must carry workers' compensation insurance or qualify for self-insurance. Compliance with this requirement is essential to protect both the employer and employees.
When selecting a workers' compensation insurance provider, consider factors such as the provider's experience in the industry, financial stability, coverage options, claims process, customer service, and cost.
We recommend requesting multiple quotes and comparing the offerings before making a decision.
Covering your business and employees with a trusted insurance partner — like EverPeak — brings peace of mind so you can focus on your bottom line.
Employers who fail to provide workers’ compensation coverage face a misdemeanor punishable by a fine of up to $10,000 or imprisonment in the county jail for up to one year, or both. Additionally, the state issues penalties of up to $100,000 against illegally uninsured employers.
In most cases, employees in California are barred from suing their employers for work-related injuries or illnesses. The workers' compensation system provides an exclusive remedy, meaning that employees typically cannot file a lawsuit against their employers. Instead, they must pursue a workers' compensation claim to receive benefits for their injuries or illnesses.
Generally, independent contractors aren’t covered by workers' compensation insurance in California. Workers' compensation laws typically apply to employees rather than independent contractors. However, it's important to note that the classification of a worker as an independent contractor or an employee can be complex, and misclassification can lead to legal disputes. If unsure whether an independent contractor should be treated as an employee, seek legal guidance.
Ideally, the incident should be reported immediately or within a few days of the occurrence. Prompt reporting helps ensure the necessary steps are taken to initiate the workers' compensation claims process.
Employees can contact the Workers’ Compensation Insurance Rating Bureau to verify if their employer has coverage.