Workers' Compensation
What is Worker’s Compensation? Why do I need it?
- Coverage for your employees should they get injured while on the job
- Covers employees who develop occupational diseases
- Provides for medical expenses, partial wages, retraining costs for the employee
- This is mandatory insurance required by California law
- Needed when you have at least 1 employee, full or part-time
- Roofers are required to get a policy even with no employees
- Watch out who you call an “Independent Contractor”. Stricter rules for Work Comp
- $1,000 fines per employee for not having coverage and work stops until you get it.
- Fines of $10,000 per employee if worker is injured and you do not have coverage.
- State Compensation Insurance Fund is the largest carrier in California. They must insure any applicant.
Who can be excluded from coverage?
- Sole Owners can elect to not be covered by the policy
- Corporate Officers and Directors can elect to be excluded
- Family members living at home and under 18
- Relatives cannot be excluded
How is my premium determined?
- Premium is based on wages paid
- Each trade has it’s own classification and rate
- Multiply every $100 of payroll by the rate to determine your premium
- Credits may be provided the carrier for size of account, claim history, other safety factors
- Accounts may be surcharged for poor history of claims
- Policies are audited each year to verify correct payroll was reported.
What is an Experience Modification?
- This is rating given by the WCIRB to qualifying companies that can lower or raise your rate based on your claim history, size etc. compared to similar companies