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

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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.