CIA Insurance Services

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


This is only a general summary of the coverage of this type of policy. You should refer to the actual policy for coverage limits, exclusions and other conditions.