Are There Different Types of Workers’ Compensation?

Contractors reviewing California Workers' Compensation Policy DocumentsWhether you’re a commercial business or a contractor, we understand you have many questions about the different types of insurance coverage we offer. One of the most frequently asked questions our clients ask us is about workers’ compensation insurance and coverage needs. At BearStar Insurance Services, we’re here to help California commercial businesses and contractors alike discern exactly what your specific insurance needs are related to your specific business. In this week’s blog, we’re answering your question, “Are there different types of workers’ compensation?”

Whether you’re a contractor or commercial construction business in California you must carry workers’ compensation insurance if you have one or more employees. You’re also required to have workers’ compensation coverage if you’re a roofer, since it’s considered a higher-risk segment. As a roofer, it doesn’t matter if you’re an independent contractor or if you don’t have any employees except yourself, you’re required to carry workers’ comp under California law, according to California Labor Code Section 3700.

Workers’ Compensation Coverage for Contractors

There may be times when a contractor, who owns your own business, and you don’t have any employees, but you have a contract requiring workers comp, and they are not willing to waive the requirement. In those situations, the client can purchase what is called a certificate only or ghost policy, which basically means there are no employees but a work comp policy is in place

Workers’ compensation insurance covers full-time, part-time, and seasonal workers. The same applies to contractors. The contractor who carries the policy and their employees are also covered.

A contractor with an active contractor’s license or contractors who want to reactivate an inactive license have to do one of the following things to get workers’ compensation, according to the California Contractors State License Board. You need to provide CSLB with a Valid Certificate of Workers’ Compensation Insurance or a valid Certification of Self-Insurance from the California Department of Industrial Relations. Another option is to provide CSLB with a signed exemption, certifying you do not have any employees.

Workers’ compensation coverage must be continuous and can not lapse for any reason or you will face penalties and license suspension.

Workers’ Compensation Coverage for Commercial Businesses

As we said earlier, worker’s compensation is required for all commercial businesses with at least one employee. For commercial businesses that are headquartered in another state, your business must also carry workers’ compensation insurance for employees who regularly work in California.

Types of workers’ compensation claims in California are typically filed for medical care, temporary disability, permanent disability, supplemental job displacement, and death benefits.

Workers’ compensation for any commercial business or contractor can be one of the highest business insurance expenditures. Who is looking out for you? Having the right team like BearStar Insurance Services to assist you, by your side, can make a big difference between overpaying, being misclassified, or waiting days for insurance certificates.

Do You Need Workers’ Comp Insurance? Contact BearStar Today!

Our specialists often return quotes the same day for workers’ comp insurance thanks to our strong relationships with carriers and underwriters. Leveraging over 100 years of experience, BearStar Insurance agents have a deep understanding of what California business owners need – and don’t need – when it comes to their insurance coverage.

From workers’ compensation and general business to contractors and cybersecurity, we work with some of the best carriers in the industry to provide you with custom-fitted, comprehensive protection at the best possible price. At BearStar Insurance Services, we value the relationships we build with our clients. Fill out this form to get a quote or call us today at 949-979-5251 to speak with your local agent.