If you are a Californian business owner, you should be aware that it is mandatory by state law to have business insurance in California, specifically Workers Compensation Insurance. Whether you have 1 employee or 400 employees, you must have Workers Compensation Insurance or else you will face considerable fines and penalties.
Here we will briefly cover what is Workers Compensation Insurance, what it does, who it is for, and how to keep its costs as low as possible.
What is Workers Compensation Insurance?
Workers Compensation Insurance covers any potential injuries, illnesses or deaths that may occur to employees both part-time and full-time. Regardless of who is at fault, employers are expected to pay for the costs of injuries endured at work; Workers Compensation Insurance helps employers cover the cost of these fees which can include lost wages, medical expenses, job-related rehab, and more. On average, there are roughly 3 million cases of non-fatal work-related injuries filed each year, with sprains and aggravation of a pre-existing injuries being the two most common claims. Although claims of death are significantly lower—less than 5,000 per year on average—the cost of a death can be astronomical, especially without any insurance coverage.
Managing Workers Compensation Costs
Your first priority as an employer should be to remove any and all potential occupational hazards—prevention is much better than getting a cure. The best way to avoid high Workers Compensation costs is to mitigate any potential injuries from ever occurring. Identifying and addressing all of the potential work hazards can be time consuming, and for most businesses we recommend that they consider hiring a safety manager to remove occupational hazards and educate employees on the best safety practices on the job.
By addressing work hazards and having a safety manager in place prior to hiring employees, you greatly reduce your chance of employee claims of work injury, whether feigned or real.
For more information about business insurance in CA, contact our insurance experts at (877) 786 -8320.