At BearStar Insurance Services, we’re here to help California commercial businesses and contractors understand exactly what your insurance needs are to make sure you’re properly covered, across the board. We take pride in tailoring each policy specific to your unique business needs. That’s why we enjoy sharing these blogs to help you better understand what those are. This week we’re covering the specifics of workers’ compensation insurance, what is covered, and what’s not in California. Since we get a lot of inquiries about workers’ compensation insurance specifically, we think it’s a really important topic to review. If you have any questions, don’t hesitate to reach out to a BearStar Insurance Services specialist today at 949-979-5251.
What Does Workers’ Compensation Cover in California Cover?
Every contractor or commercial business must have workers’ compensation insurance in California if you have one or more employees. Also, if you work in a higher-risk segment, such as roofing, then you’re required to carry workers’ comp even if you’re an independent contractor. In these instances, it’s required under California law.
If the business is headquartered in another state, commercial businesses must still carry workers’ comp insurance for employees who regularly work in California.
You’re covered if you work full-time, part-time, or are a seasonal worker; it doesn’t matter. The same applies to contractors. The contractor who carries the policy and their employees are also covered.
Benefits covered by workers’ comp in California include:
- Medical expenses such as emergency and hospital visits, medical and doctor care, surgeries, and medication costs.
- Ongoing care benefits for occupational or physical therapy as needed.
- Disability benefits for any injury that results in disability both temporary and permanent.
- Loss wages are not paid in full due to injury or illness; rather, in the Golden State, about two-thirds of the recipient’s average gross wages are paid.
- Death benefits are granted to help pay for funeral costs and family survivor’ benefits.
Workers’ compensation coverage must be continuous and can not lapse for any reason. Failure to maintain workers’ compensation insurance coverage in California will result in penalties and license suspension.
What Doesn’t Workers’ Compensation in California Cover?
There are certain instances when workers’ comp insurance does not provide coverage. Examples include sole proprietors of a business, except roofers, independent contractors, and domestic workers related to their employer.
When a company hires a self-employed individual, they aren’t required to pay worker’s compensation because the worker is considered an independent contractor.
Instances a workers’ comp claim could be denied in California:
- Illegal activities
- Policy violations
- Intoxication or substance abuse
- Fight in the workplace or horseplay
For workers’ comp insurance in California, BearStar Insurance Services offers personalized service. Our specialists often return quotes the same day for workers’ comp insurance thanks to our strong relationships with carriers and underwriters.
Do You Need Workers’ Comp Insurance? Contact BearStar Today!
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.