What exactly is WORKERS Compensation Insurance?

It's a contract issued to a business owner which gives them insurance coverage for the costs of work-related injuries for employees. This type of insurance pays the entire cost of an injury to a worker like medical expenses, lost wages, rehabilitation, and death or permanent disability. The benefits offered under a worker' compensation policy are determined by the state's workers' compensation regulatory commission.workers comp lawyer

HOW IS WORKERS' COMPENSATION PREMIUM DETERMINED?

This is rather simple. The premium is a proportion of your estimated pay roll for the duration of the policy. As the probability of injuries for workers differs based on the type of work they perform and the type of work they do, every business is assigned a particular classification that represents the degree of risk they face in their particular industry. For example, if you own a convenience shop that is open until 11:00 pm, your worker classification code for workers' compensation is 8061 – Store- Convenience retail. Note both the classification number and the description are established by the state under subsection 11658 under the California Insurance Code. There are approximately 500 classifications, which are released by the state to cover every company, and industry in California. The cost of every classification is determined by the level of hazard of injuries in the particular industry that it is a part of. i.e. the cost for a convenience store's service is less than a construction contractor's, but higher than that of a telemarketing company's.

DO I HAVE TO HAVE WORKERS' COMPENSATION INSURANCE?

If you operate your business within the state of California and you employ workers, you are obliged by the state's labor commission to obtain workers insurance for compensation. The only businesses which are exempt from this requirement are those that are run exclusively by the proprietors with no employees. Also, if there are employees in your business, which includes temporary or seasonal part-time assistance, you need to obtain workers' compensation insurance. If you don't have it you risk large fines and possibly closure of your business. An employee can be any person who is employed by the businessbut is not an owner in law. The relatives including the children of the owner who perform any job on behalf of the business are considered to be employees, even if those relatives or their children are making donations to the business.
Time without pay.

There is another reason for you to have the workers' compensation coverage, and that is to protect yourself from financial loss. The medical expenses of treating injured workers as well as the loss of wages and the other expenses associated with it could be incredibly burdensome for any small or large business, and threaten their assets.

ARE OWNERS COVERED UNDER A WORKERS' COMPENSATION Policy?

They are insured only if they choose to be. Also, owners can choose to include or exclude themselves from coverage. This would mean if they are covered under the coverage, then they also have the right to benefits in the event that they suffer an injury. If you decide to be covered, your pay-roll would be considered when calculating your workers' compensation premium. You can also opt to opt out of coverage In this scenario, there is no charge for the premium associated with your payroll.

WHO IS CONSIDERED TO BE AN OWNER?

Who can be excluded is determined based on the legal type of ownership for your business. The three most popular legal ownership entities employed by companies are as follows:

1. Sole proprietorship or individual ownership - in this case, the owner, their spouse as well as their family members living in the same residence can be excluded from the coverage.
2. Partnership - All partners may be excluded, but spouses and family members are not exempt.
3. Corporation - All share holders who are officers may be excluded if officers own all the stock of a corporation. Officers who do not hold shares or share owners who are not officers will be exempted. Parents and spouses are not able to be exempted... workers compensation

I hope this has been useful in helping shed some light on Workers' Compensation workers' compensation coverage for your company. Contact us with any questions that you may have. We would also like people to know our company offers the most affordable Workers' Compensation policies that are suitable for the type of business you operate. We can provide you with quick quotes without cost or obligation to you.

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